Your Own Private AI
As AI evolves, businesses are turning to custom LLMs to unlock corporate resources.
As artificial intelligence evolves, custom systems unlock business resources
Konosuke Matsushita was one of Japan’s greatest entrepreneurs. As the founder of a light socket company that evolved into Panasonic, he inspired legions of salarymen with his business wisdom. Twenty-five years after his death, the “god of management” was effectively resurrected as an artificial intelligence (AI) model. A chatbot trained on his writings and speeches can produce eerily lifelike Matsushita answers, according to one relative, and will eventually be used to make business decisions. It’s a dramatic example of how businesses are using AI to leverage intellectual property built up over decades.
The past few years have seen an explosion of AI applications based on large language models (LLMs) and tools such as OpenAI’s ChatGPT and Google’s Gemini. They have been used for everyday tasks such as writing text for slide decks, lessons, and articles, as well as synthesizing search results as in Google’s AI Overview that now appears with most searches.
LLMs are based on computational systems using neural network transformers that perform mathematical functions. Measured by the number of parameters they contain, LLMs learn by analyzing vast amounts of text from books, websites, and other sources. During training, the model identifies patterns, relationships among words, and sentence structures. This process involves adjusting millions of parameters—values that help the model predict what comes next in a sequence of words.
A major problem with LLMs and generative AI, however, is that they usually draw entirely from online content and thus are prone to inaccuracies. AI hallucinations, as they are called, occur when LLMs observe patterns in the data that are nonexistent, or at least imperceptible to humans.
One solution is private AI. It brings the power of LLMs inside a company, where queries are secure and limited to the company’s own data, reducing the risk of security leaks and incorrect or misleading responses. Private AI has traditionally been limited to government, defense, finance, and healthcare users, but it’s spreading to a broader spectrum of industries due to fears about intellectual property theft.
“[Private AI] brings the power of LLMs inside a company, where queries are secure and limited to the company’s own data, reducing the risk of security leaks and incorrect or misleading responses.”
Kenja KK, a member of the American Chamber of Commerce in Japan (ACCJ), is opening up the market in Japan to private AI. The Tokyo-based company offers AI solutions for enterprises that include purpose-built expert systems, incorporating a relatively new AI technology called retrieval-augmented generation (RAG).
Bearing a name coined as recently as 2020, RAG relies on a predetermined collection of content to improve the accuracy and reliability of generative AI content. Kenja offers a self-service plan for small and medium-sized businesses and a more comprehensive enterprise plan for businesses.
“Private AI is the next frontier,” said Kenja founder and Chief Executive Officer Ted Katagi, who is also chair of the ACCJ’s Marketing and Public Relations Committee. “All companies face the same issues: you have very sensitive data that you don’t want to make accessible to everybody at the same time. Private not just in terms of someone outside the company, but within the company, too. You may not want HR data to be shared with people in finance, for example. That’s an issue you want to solve, and we solve that.”
Kenja users create so-called rooms where they can upload thousands of documents or other content, organizing this into topic-specific folders. The process can be automated, and Kenja can train and fine-tune the system. For instance, it can be taught to forget certain words or trained to understand a balance sheet in order to do financial tasks such as due diligence.
“You are kind of building a wall around a set of information and telling it to only use what’s in this area,” explained Katagi. “Having 85–90 percent accuracy—which is what current generative AI, such as ChatGPT, Gemini, or Claude, will give you—is not good enough. Private AI models that are fine-tuned and query a closed set of materials can close that gap.”
Private AI is being used in surprising applications. Just as Panasonic has cloned its founder in digital form, Dr. Greg Story is using Kenja to share the teachings of another business luminary, Dale Carnegie. The self-improvement guru from Missouri wrote a book in 1936, How to Win Friends and Influence People, that still counts among the world’s all-time bestsellers. As president of Dale Carnegie Tokyo Japan, Story has been teaching Japanese businesspeople about leadership, communications, and other skills in Dale Carnegie seminars for the past 14 years. Dale Carnegie started in Japan in 1963.
Since learning about the impact of content marketing, he has built up an enormous corpus consisting of white papers, e-books, printed books, course manuals, 270 two-hour teaching modules, as well as video and audio recordings that include hundreds of podcast episodes. He has penned a series of books himself in English and Japanese that includes Japan Sales Mastery, Japan Business Mastery, Japan Presentations Mastery, and Japan Leadership Mastery.
“If you like the cut of our jib and you want a Dale Carnegie point of view and a curated, trustworthy response, we provide that through this AI.”
The material was scattered in different places, and when clients began asking for on-demand training, Story decided to get ahead of the curve by including all his company’s content in AI-curated form, something public chatbots cannot do.
“ChatGPT will give you everything it can scrape together, but it’s everything and therefore nothing,” said Story. “You get generic answers, and you don’t know if they’re trustworthy. But if you like the cut of our jib and you want a Dale Carnegie point of view and a curated, trustworthy response, we provide that through this AI.”
Story thinks the technology can benefit businesses that have substantial bodies of work to draw on, but those that don’t will get thin answers. He adds that using tools such as those from Kenja will not only help his company learn about the benefits of AI, but it will also give it an edge over competitors. He plans to roll out his AI offerings in 2025, delivering customized responses to students’ questions in English or Japanese on topics ranging from sales to diversity, equity, and inclusion.
Could there be a Dale Carnegie version of the Matsushita chatbot one day?
Kenja has begun working with Dale Carnegie’s global team to do just that, and has developed a prototype revival of Dale Carnegie’s voice, avatar, and writing style. The writing style and word generation are done with Kenja RAG AI technology.
“Carnegie became a global superstar in a non-digital world,” noted Story. “There’s no question we can get an AI to read a script generated in his style, in his voice. It’s amazing.”
Clinic Concierge
Finding a doctor and overcoming the language barrier can be a challenge. ROAM Medical helps you get the care you need wherever you need it.
ROAM Medical helps you get the care you need, wherever you need it
While studying at Keio University in 2019, Chris Motz experienced one of the unpleasant aspects of living abroad: navigating a new medical system.
“I had to find a dentist,” he recalls. The permanent retainer on his bottom teeth broke, leaving a wire protruding inside his mouth. He turned to the school administration for help.
“They recommended a dentist down the street,” Motz said. “Like many doctors in Tokyo, he spoke English but didn’t really speak English. The solution he provided was very much a Band-Aid. He put some glue on the retainer and put it back in place, which didn’t actually repair the wire. And he didn’t refer me to an orthodontist.”
The retainer broke again.
Motz’s parents happened to be visiting and asked their hotel concierge to book a doctor. “They set me up with a really nice clinic. The dentist trained in the United States and spoke fluent English. But that whole experience took a week or two for what I thought should have been an easy fix.”
The ordeal gave Motz, a graduate of the Wharton School of the University of Pennsylvania and Imperial College London, a business idea. He would create a platform that connects expats and travelers to English-speaking healthcare services abroad.
ROAM Medical launched in Tokyo in January 2022 with 54 clinical partners. Since then, it has completed 62 bookings through its concierge service, which schedules appointments with the most appropriate provider based on the patient’s needs.
“The case I’m most proud of is that we helped a baby enter the world,” Motz shared. “We were contacted by an American woman who found out she was pregnant soon after moving to Tokyo and needed to find an ob-gyn. We were able to book her first appointment, and she booked a few more through us after that.”
“Our goal is to create a product that helps you get the care you need wherever you need it by building a strong network of providers around the world to deliver a more interoperable experience.”
To build its network in Tokyo, ROAM initially researched the Japan National Tourism Organization’s list of foreigner-friendly healthcare providers. “We filtered through those by visiting their websites to get a sense of truly how well they can speak with foreigners,” Motz explained. “Then we reached out to verify their information, tell them about ROAM, and begin a dialogue to start working together.”
To find a clinic, a patient visits the ROAM website and completes the concierge form, explaining their needs, preferred time, and insurance situation. The fee per booking is $5 (yen charges vary with exchange rate). Treatment costs depend on the doctor. When ROAM receives a request, they contact an appropriate clinic, book the appointment, and send a confirmation within 24 hours.
“If you talk to enough expats, you’ll hear a range of stories about being sick abroad,” said Motz. “And because you’re there for an extended period, you must regularly interact with the healthcare system. It’s unavoidable, and it can be frustrating.”
Poor interoperability is another issue Motz hopes to solve through ROAM. “A lot of medical records are difficult or impossible to transfer from country to country,” he explained. “It shouldn’t be this way. Our goal is to create a product that helps you get the care you need wherever you need it by building a strong network of providers around the world to deliver a more interoperable experience.”
Tokyo was the starting point, but Motz and his team have begun building a roster of English-speaking healthcare providers in Seoul and other major cities in east Asia. Over the next five years, they plan to expand the network to cities around the world.
For individuals needing treatment, ROAM provides a helping hand during life’s trying moments. For healthcare providers seeking to assist English-speaking expats and travelers, it offers a direct link to those in need. And for companies with a diverse staff, the service is an excellent way to deliver peace of mind to the talent that powers their success.
Learn more about ROAM and find English-speaking healthcare services in Tokyo: https://tokyo.roammedical.com
Academic Evolution
The British School in Tokyo is moving from A Levels to the International Baccalaureate.
The British School in Tokyo is moving from A Levels to the International Baccalaureate
The British School in Tokyo (BST), the largest British international school in Japan, is planning to transition from the A Level curriculum to the International Baccalaureate Diploma Programme (IBDP) for students in Years 12 and 13 (ages 17 and 18). This shift is part of the school’s commitment to providing an educational experience that aligns with the evolving aspirations and needs of its diverse and dynamic student community.
BST is currently a candidate school* for the IBDP and aims to become an authorized IB World School, with the last A-Level cohort running from 2024 to 2026. The (International) General Certificate of Secondary Education—or (I)GCSE—will remain for Year 11, and there will be no changes for other year groups.
Evolving Education
Founded in 1989, BST is widely recognized for its strong reputation and commitment to excellence. The school currently serves a diverse international community of students representing 65 nationalities. While A Levels remain a respected qualification, the school has recognized the need to evolve in response to its changing demographic. The IBDP, a globally recognized qualification offered by thousands of schools worldwide, provides a broader, more international approach to education.
The IBDP offers a comprehensive education, requiring students to study six subjects across disciplines. It encourages critical thinking through Theory of Knowledge and promotes holistic development through Creativity, Activity, and Service, fostering independence and confidence.
Widely recognized by universities, the IBDP is one of the most rigorous pre-university qualifications. Research shows that IBDP graduates are more likely to be accepted at top higher-education institutions, with components such as the Extended Essay preparing students for university challenges.
Student Success
Over the past five years, BST students have matriculated to institutions such as Oxford, Cambridge, LSE, Columbia, Pennsylvania, Chicago, NYU, Toronto, UBC, Amsterdam, Leiden, and Todai. BST believes that it is important to match students to the best university for them, and the IBDP will help BST students continue to secure places in a wide variety of universities around the world.
As BST embarks on this exciting journey to become an IB World School, it remains committed to providing students with the best possible education, equipping them with the knowledge, skills, and values necessary for success in an increasingly globalized world.
For details and to enroll, visit www.bst.ac.jp.
AI Audits
AI's ability to analyze considerable amounts of information quickly offers great potential for auditors. How is this rapidly evolving tool impacting the audit process?
What impact does artificial intelligence have on auditing?
In the Fourth Industrial Revolution, with increasingly developed technology, the application of artificial intelligence (AI) has become popular both in everyday life and work. Thanks to AI’s outstanding features, multiple tasks can be performed in less time and with less effort. For this reason, AI is playing an important role in some areas which require the processing of large amounts of information, such as auditing. So how does AI affect the work of an auditor?
AI is defined in the Oxford English Dictionary as “the capacity of computers or other machines to exhibit or simulate intelligent behavior; the field of study concerned with this.” In later use, it is also defined as “software used to perform tasks or produce output previously thought to require human intelligence, especially by using machine learning to extrapolate from large collections of data.” In other words, AI is used to perform tasks that require human intelligence through programmed algorithms.
AI processes supplied information and produces results after conducting an analysis. Thus, AI can convert huge amounts of data in a short time and increase work efficiency.
With those exceptional aspects, AI can be applied at many stages of the audit process. How is it used and how does it affect the efficiency of the audit?
This can be broken down into three stages:
Audit Planning
Based on the customer data input, AI will propose appropriate audit procedures to optimize the audit plan.
Risk Assessment
Using the provided information, AI will analyze past trend fluctuations and financial indicators. Since AI can process and synthesize considerable amounts of information, the analysis will be more specific and more effective, giving auditors a deeper view of the business’s situation. Accordingly, auditors will identify potential risks more accurately and provide more appropriate material. As a result, AI also can assist auditors to predict the potential financial situation and determine the reasonability of financial forecasts as well as potential future risks of the business.
Substantive Procedures
At this stage, auditors must perform many repetitive tasks, such as checking details of documents (e.g., invoices and contracts), matching data among documents, and verifying the accuracy of the financial statements. AI can perform these tasks automatically through programmed algorithms, allowing auditors to review more data promptly with a higher level of accuracy in less time than a traditional audit.
By using AI to analyze and process the large volume of transactions, auditors can easily detect anomalies, errors, and risks in financial data. It allows auditors to focus more on high-risk areas that are prioritized, thereby improving the audit quality. Additionally, AI has a function known as machine learning which allows the system to learn from past data and improve its performance, thus enhancing accuracy and effectiveness.
It can be seen that applying AI in auditing brings many benefits. On the one hand, labor savings and productivity increases are the prominent characteristics of AI system. And with the ability to review and analyze information on a wide scale, AI can help identify fraud or potential risks that may be overlooked, thereby improving risk assessment and strengthening audit quality.
“With the ability to review and analyze information on a wide scale, AI can help identify fraud or potential risks that may be overlooked, thereby improving risk assessment and strengthening audit quality.”
However, using AI still has certain limitations:
AI works based on the provided data, so ensuring that the data is accurate, complete, and taken from reliable sources is crucial. Additionally, with a colossal volume of data, errors are likely to occur during analysis and processing. This can result in inaccurate conclusions and affect audit results.
Another limitation relates to cybersecurity, as using AI requires an internet connection. Therefore, if the internet system is compromised, AI algorithms could be altered and routed to discrepancies in AI operations.
AI is, after all, a machine set up by humans which performs tasks based on pre-established patterns. Hence, AI cannot respond to or handle unforeseen situations. Moreover, maintaining an attitude of professional skepticism is extremely important during the audit process to minimize potential risks. Nevertheless, the nature of AI is mechanical, so it is impossible to possess this skepticism when analyzing information and handling situations as auditors do.
Another limitation is that AI might not be able to satisfyingly detect fraud or window dressing in accounting that may occur in a business, because AI lacks the ability to think and evaluate like humans. Fraud detection requires auditors to possess a professional skepticism to assess the evidence collected during the audit and to evaluate it based on the business operations and internal control activities.
With workloads increasing, the benefits that AI provides are indispensable and will have a positive impact on the audit process. However, auditors should use AI appropriately and not abuse it or rely entirely on it, because AI is precisely a tool and cannot solve complex issues that require human decision-making on a system basis. Consequently, the balance between using AI and manual work in auditing is prerequisite. Furthermore, auditors should be equipped with the necessary knowledge and skills to fully understand AI’s operations, employ its produced results, and avoid cybersecurity attacks.
For more information, please contact Grant Thornton Japan at info@jp.gt.com or visit www.grantthornton.jp/en
Disclaimer: Opinions or advice expressed in the The ACCJ Journal are not necessarily those of the ACCJ.
Twenty Years of Links and Leads
The 20th edition of the North America–Europe Golf Challenge is set for October 4. Organized by the ACCJ, EBC, and CCCJ, the shotgun-style tournament tees up fun, food, drinks, prizes, and one of the year's best networking opportunities.
The Mercedes-Benz–Francis Ford Coppola Winery Cup strengthens business connections.
It started in 2001, on a sunny day in Honolulu. Robert Grondine and Erik Ullner had just completed a round on the Hawaii Kai Golf Course when Grondine, then president of the American Chamber of Commerce in Japan (ACCJ), had an idea. Could a tournament modeled after the Ryder Cup bring Tokyo’s foreign business community together? Ullner, then vice-chair of the European Business Council (EBC), loved the concept and brought it to EBC Chairman Richard Collasse.
“Our chairman was not a golfer, but he liked the idea because that sort of networking opportunity didn’t exist in those days,” recalled Ullner. “He said, ‘Erik, you’re the golfer, why don’t you arrange it together with the ACCJ?’”
The North America–Europe Golf Challenge was born.
The first outing was on September 26, 2003, at Atsugi Kokusai Country Club. Opened in 1959, the course in Kanagawa Prefecture continues to host the event to this day.
The 20th edition of the international battle will take place in Atsugi on October 4.
Organized by the ACCJ, the EBC, and, since 2013, the Canadian Chamber of Commerce in Japan (CCCJ), the shotgun-style tournament pits Team North America against the European national chambers of commerce and business associations in Japan that make up the EBC. Up to 72 golfers can play for each side. In some years, that has been stretched to 80.
Originally called the DaimlerChrysler Cup, the tournament was renamed the Daimler and Chrysler Cup in 2008, and then the Mercedes-Benz Japan Cup in 2010, as the title sponsor’s corporate structure evolved. In 2015, global lifestyle brand Cole Haan joined as cosponsor and the event became the Mercedes-Benz–Cole Haan Cup. Its sponsorship continued until the pandemic. In 2022, Thomson-Reuters co-sponsored.
This year, a new North American title sponsor comes aboard. California’s Francis Ford Coppola Winery will bring their Alexander Valley varietals to the course and after party.
“The 20th edition of the international battle will take place in Atsugi on October 4.”
The event is always competitive, with team scores based on the average of the top 80 percent of players. The winner is rarely ahead by more than 1.5 strokes. The smallest margin has been 0.06 strokes, demonstrating the very even matching of players.
This has led to a back-and-forth affair over the years. The European team won the first cup in 2003 before the North American team pulled off a three-peat in 2004, 2005, and 2006. The Europeans fought back, winning two of the next three (2007 and 2009) before the North Americans went on another roll, prevailing in 2010, 2011, 2012, 2013, and 2015. Not to be outdone, Europe has nabbed five of the past six titles: 2016, 2017, 2018, 2022, and 2023. The tournament was not played in 2020 and 2021 due to the coronavirus pandemic.
While this rivalry is fun, the real value, participants consistently say, is the networking and chance to build new relationships.
“I have played in the tournament 15 or so times over the years, including its first 11 years in a row,” said longtime participant Ryan Dwyer, a partner at the Tokyo office of K&L Gates. “The course is always in top shape, and I always enjoy the round and the networking party afterwards.”
Beyond networking, the tournament also supports the community. A fundraising component was added in 2006, and proceeds helped the YMCA Challenged Children Project—a program assists children with disabilities and special needs, offering them opportunities for inclusion, development, and participation in physical, social, and recreational activities—through 2022. This year, support will go to Unleash Potential, a non-profit organization dedicated to helping children with disabilities and challenges in Japan.
Prizes are also a popular part of the gathering, and the awards and raffle are a centerpiece of the post-competition party at the clubhouse. While top players have a chance to win performance prizes like high-end golf gear, all players have a shot at incredible prizes, such as wine and air tickets for international flights. With millions of yen worth of prizes being provided by this year’s sponsors, it is expected that no player will leave empty-handed.
More than 20 years after the seeds were planted in Hawaii, the North America–Europe Golf Challenge has blossomed into one of the most popular dates on the calendar for golfers of all levels in the business community. And as more Japanese players join, the opportunities for networking continue to grow. Grondine, who passed away in 2011, would no doubt be proud of what the ACCJ, CCCJ, and EBC task forces have nurtured.
If you’re a golfer, join the fun, enjoy the great on-course food and drinks, and find your next business connection. This is one event you shouldn’t miss!
Youthful Energy
Fresh ideas and youthful energy are the lifeblood of business and international relations, and the ACCJ is dedicated to nurturing rising talent through the Young Professionals Forum.
The ACCJ Young Professionals Forum opens doors for ages 35 and under.
Fresh ideas and youthful energy are the lifeblood of business and international relations, and the American Chamber of Commerce in Japan (ACCJ) is dedicated to nurturing rising talent through the Young Professionals Forum (YPF). An interactive platform for young, working professionals aged 35 and under, the YPF provides members with opportunities to actively engage in all aspects of the chamber’s activities, including networking, information sharing, and advocacy.
“The YPF is all about creating connections that bridge generations, industries, and more,” explained Melynie Yoneda, a vice-chair of the forum. “Members have the opportunity to interact with high-ranking leaders within the ACCJ, as well as network with peers that they might not necessarily be able to meet in their day-to-day jobs. And ACCJ corporate members are able to get fresh perspectives from YPF members.”
Co-Chair Kelly Langley said that the YPF “has worked closely with the Board of Governors to enhance engagement with young professionals and continue innovating to build the future pipeline of leaders and members.” He added that professional development and human resource challenges continue to be areas where the YPF aims to contribute.
“The YPF is all about creating connections that bridge generations, industries, and more.”
Events such as the Learning from Executives series, held in collaboration with the ACCJ CEO Forum, expand mentorship and training, helping members develop both professionally and personally.
Yoneda said she is grateful for the forum and the opportunities it opens up. “As a young professional in Japan, it is easy to get swept away in your day-to-day tasks or fall prey to tunnel vision,” she noted. Her favorite memory so far was a cross-chamber networking event last October that brought together members of eight foreign chambers of commerce. “There was a palpable energy in the room that radiated from the 80 young professionals eager to meet and network with their peers.” A similar event is planned for September 17.
“If anything, the YPF is a chance to interact with peers from all industries and walks of life,” Yoneda concluded. “Today, we may just be networking and eating pizza, but it is exciting to think that the connections we make will become the future leaders shaping the US–Japan relationship.”
Sightseer Surge
Japan has steadily reclaimed its status as a top destination. It is no longer a question of if Japan will recover from the pandemic, but rather how it will rise to the challenge of serving up its famous omotenashi to so many visitors.
Japan has seen a steady rise in visitors. Now set to break a record, can the tourism industry keep pace?
After more than two years of isolation and a slow reopening, Japan has steadily reclaimed its status as a top destination. The impressive bounce back began in 2023, when 25.06 million visitors lifted inbound tourism to 79 percent of the pre-pandemic record. The country is now on course to shatter its record of 31.88 million travelers, set in 2019.
In fact, the rebound has been so great that the pendulum has swung from tourism drought to flood. But with the economic benefits come strains on the hospitality industry. It is no longer a question of if Japan will recover, but rather how it will rise to the challenge of serving up its famous omotenashi to so many visitors.
Moving Past the Pandemic
In 2023, The ACCJ Journal reported on Japan’s reopening. Since the easing of border restrictions, the influx of tourists has had a positive impact on the hospitality industry.
Part of what continues to make Japan an attractive destination is its evergreen allure as a place of rich culture and history. “Japan has significantly boosted global awareness of its many attractions through marketing efforts such as the Cool Japan campaign and the strategic use of social media,” said Karl Hudson, area vice president of Japan and Guam for Marriott International, Inc.
More recently though, one of the most-mentioned drivers has been currency trading. Hudson continued: “The weak yen is having a significant impact on tourism operations in Japan, influencing both inbound and domestic tourism. On the positive side, it has made Japan a more affordable destination for foreign tourists, leading to a surge in inbound tourism.”
These travelers spent nearly ¥5.3 trillion in 2023. Despite the total number of visitors not reaching 2019 numbers, spending exceeded that year’s ¥4.81 trillion. Midyear projections put the 2024 outlay at ¥8 trillion, and the Japanese government is eying ¥15 trillion by 2030.
According to The Asahi Shimbun, a significant portion of 2023’s ¥5 trillion-plus was spent on accommodations. At ¥1.83 trillion, this category accounted for 34.6 percent of the total spending. Other noteworthy expenditures were ¥1.4 trillion on shopping, ¥1.2 trillion on food and drinks, and ¥602.4 billion on transportation.
The New Challenge: Overtourism
With spending now surpassing pre-pandemic levels, the challenge lies in how to handle the ever-growing number of Japan explorers. In June, the country welcomed the most ever in a single month: 17.8 million.
“The downside [to the tourism influx] includes higher costs for imported goods, which can affect various aspects of tourism operations, from food and beverage supplies to hotel amenities,” explained Hudson. “To navigate these challenges, businesses are adopting dynamic pricing strategies, adjusting rates based on demand, seasonality, and booking trends to optimize revenue and manage costs effectively.”
Not only can these challenges cause issues for operations, but they can also impact the overall travel experience.
“You may often see long lines of foreign travelers waiting in front of train ticket counters and ticket vending machines,” noted Yasuhiro Sudo, senior vice president and Japan country manager at American Express International, Inc.
“With spending now surpassing pre-pandemic levels, the challenge lies in how to handle the ever-growing number of Japan explorers.”
These long lines, he said, are caused by travelers trying to purchase tickets, using unfamiliar machines that lack multilingual support, or interacting with agents. “This causes many foreign travelers to become tired before boarding the train, resulting in a less-than-satisfying travel experience.”
In the most-visited areas, there is a lot of strain on infrastructure, which is felt by residents and visitors alike.
A notable case study is Kyoto, which has received a significant portion of the tourism pie since borders reopened. Residents are growing uncomfortable with the number of daily visitors. As reported by NHK, of about 2,500 Kyoto residents surveyed between October and November 2023, some 86 percent said that they were annoyed by crowding in and around tourist spots. According to the survey, the impact was felt particularly on public transportation, which has become overcrowded. Tourists’ littering and overall behavior are further irritants.
Sudo said the issue is more pronounced along Japan’s Golden Route, which runs from Tokyo to Kyoto and includes stops at popular destinations such as the hot springs of Hakone, in Kanagawa Prefecture.
According to data from the Japan Tourism Agency’s 2023 Accommodation Travel Statistics Survey, Tokyo, Osaka, and Kyoto accounted for about 70 percent of inbound lodging destinations, and there is an increasingly large bias toward staying in these cities.
Digital Transformation
In the face of these challenges, experts in the field are looking to various solutions, including in the area of digital transformation (DX).
American Express, Sudo said, is promoting the adoption of contactless payments with credit cards on public transportation so that foreign travelers can use their usual credit cards.
“This is not only for transportation,” he added, “As contactless credit card payment progresses at sightseeing spots, stores in town, shrines, temples, and other places, it can contribute to reducing congestion. Cashless, contactless payment is one of the first issues to be addressed in the tourism DX space.”
Marriott’s Hudson agrees, and shared some of their own efforts. “Our app and web merchandising have become key localization channels, enabling us to deliver targeted and relevant offers, destination content, and dining recommendations tailored to the location, tier level, and digital behaviors of each of the 210 million Marriott Bonvoy members. By adopting a federated regional approach to managing merchandising content, we achieved faster market responsiveness amid the shifting conditions following the Covid-19 pandemic.”
“In the face of these challenges, experts in the field are looking to various solutions, including in the area of digital transformation.”
Hudson also noted the efficacy of Marriott’s other DX efforts, such as their Destination Storefronts,
Dining Portal, and multilingual websites.
The digital space has been a key element in improving visitor experience, with other major players also bringing in new services, such as Universal Studios Japan’s smartphone app.
With the upcoming Expo 2025 Osaka, Kansai expected to attract 28.2 million visitors—3.5 million from overseas—an important consideration is how to ensure smooth travel and minimize disruptions. “We remain hopeful that tools like the Travel Contents App, among others, will facilitate seamless access for visitors from across the globe to enjoy Osaka,” a Universal Studios Japan representative told The ACCJ Journal.
Fees and Education
Another option industry experts are eying is the introduction of taxes and other visitor fees. One such proposal was discussed at the Osaka Prefectural Assembly in March, with Governor Hirofumi Yoshimura emphasizing “the need to secure financial resources for landscape beautification and other things,” as reported by The Mainichi Shimbun.
Similar taxes and fees already have been introduced, such as July’s introduction of a ¥2,000 fee to climb Mount Fuji and the International Tourist Tax, which came into effect in 2019 and requires residents and visitors alike to pay ¥1,000 when leaving the country. ACCJ Tourism and Hospitality Committee Chair Stephen Zurcher said he is unsure of the efficacy of these measures. “When our committee members met with various Diet members last year, we found that the tourist tax usage was opaque,” he explained. “Even the Diet members did not know how the tax was being spent.”
A shortage of personnel is also making it difficult to serve visitors. “With the rapid return of strong inbound tourism, the industry is seeing higher demand for rooms, but staff levels are lower than before the pandemic,” noted Zurcher, who is also a management professor and dean of the Asian Studies program at Kansai Gaidai University. The sentiment was echoed by Hudson, who said that Marriott is also facing “staffing challenges.”
This is not a small issue. According to business research provider Teikoku Databank Ltd., more than 80 percent of inns and hotels are facing a labor shortage. And with rising visitor numbers, the discrepancy between supply and demand will only grow more prominent.
“Both imported and local talent need to be developed to support the projected growth of tourism in Japan over the next five to 10 years.”
Both Marriott and Universal Studios Japan mentioned overseas recruitment and bilingual staff as being a part of the solution, but this comes alongside a push for more domestic workers and a need to educate both.
“Bringing in foreign workers to assist the labor shortage in the hospitality industry is currently being supported to some extent,” said Zurcher. “But, beyond these workers in operational roles, the industry needs management talent, and that takes a longer-term investment in talent development on the part of the government and the industry itself. Both imported and local talent need to be developed to support the projected growth of tourism in Japan over the next five to 10 years.”
The ACCJ published a viewpoint last October entitled “Preparing Japan for the Post-Pandemic Tourism Industry,” in which it recommends that the Japanese government make education in hospitality a priority. The viewpoint notes that, while a lot has gone into the building of accommodations to match tourism growth, not enough has been done to expand training at educational institutions to keep pace.
There is a call for Japan to step up its game to be on par with other international players. “Hospitality education in Japan has historically fallen to junior colleges,” noted Zurcher. “This contrasts sharply with the rest of the world, where hospitality education is conducted primarily at four-year [colleges] and at the graduate level, often at highly regarded schools such as Hong Kong Polytechnic University, the University of Nevada, Las Vegas, and Cornell University, as well as many excellent schools in Europe. Japan currently has no equivalent.” Education and encouraging young talent could be a much-needed part of the solution to both staffing shortages and visitor satisfaction.
Looking Forward
While the tourism surge has brought challenges, it presents an opportunity to improve services and create a better experience for tourists and residents alike. Whether through DX, education, or other approaches, finding solutions is paramount as Japan’s visitor numbers soar.
“Tourism is one of the fastest growing industry segments in Japan,” Zurcher said in closing. “Over time, tourism could become the most important industry for the country as a whole. It is in Japan’s best interest to be able to support this anticipated growth by investing in the labor supply.”
Supply Change
One thing the pandemic laid bare was the fragility of supply chains. Companies are taking the lessons learned, but for Japanese companies, shifting gears can be difficult. How can they connect with the right leaders?
Recruiter Robert Half on the evolving landscape of supply chain management.
From left: Kazuko Oya and Taku Yamashita (Photo: Yuuki Ide)
One thing the pandemic laid bare was the fragility of supply chains. When borders closed and restrictions to contain the spread of the coronavirus put a crimp on the movement of people and parts, manufacturers had to quickly adjust their logistics. As a changed world moves forward, companies are taking the lessons learned and looking to improve their supply chain management.
For Japanese companies, shifting gears can be difficult. Entrenched and outdated enterprise resource planning (ERP) systems, and even manual processes centered on Microsoft Excel, scream for digital transformation. But to make the change requires knowledge, experience, and leadership.
Specialized recruitment agency Robert Half is helping connect companies with consultants who can lead the way. Its team of supply chain management recruitment consultants has unique insight into the Japanese market, with extensive knowledge and established networks nurtured over 18 years. Taku Yamashita and Kazuko Oya shared with The ACCJ Journal the situation and trends in the Japanese market and how they are able to adapt to client needs to deliver exceptional value and results.
“Our unique differentiation is that we have ironclad relationships with supply chain management gaishikei [foreign-capital companies] seeking bilingual candidates,” explained Yamashita, director of supply chain management and human resources. “We completely understand skill sets, experience, and value for our clients.”
Oya, the senior division director for supply chain and procurement, noted that their extensive experience allows them “to consult with clients and collaborate to find candidates who offer the highest value and return on investment.”
Elusive Talent
Finding candidates is one of the biggest challenges that Japan faces as its domestic industries attempt to transform how they plan and manage supply chains that Oya and Yamashita said are “late to the party” and behind global standards. One big reason is education. Japanese university degrees are concentrated in areas such as finance, economics, sales, and marketing. An MBA is mandatory for supply chain management, but there are no MBA programs in Japan that focus on it. Consequently, there are few knowledgeable, educated candidates to lead the supply chain transformation.
“For a company starting or going through the transformation, it’s not just about the experience or skill set, but more about the leadership and mind-set.”
One situation that can create challenges for companies that are trying to take a step forward can come during a merger or acquisition. Domestic branches of a company may use outdated ERP systems, while the international branches run on more modern platforms and adhere to best practices. Getting the two systems to talk to one another is not possible. Changing the ERP system is the largest hurdle to overcome, and a consultant is usually brought in to get a new system in place, a process that can take a year or two.
What kind of candidate is needed to carry out such a transition?
“For a company starting or going through the transformation, it’s not just about the experience or skill set, but more about the leadership and mind-set,” said Oya. “There will be a lot of changes—not just to the system, but to the people, culture, and operational processes. So, somebody who is resilient is needed, somebody who is not afraid of making changes and can have an immediate impact from a planning perspective.”
Because of their knowledge of the industry, spanning almost two decades, Oya and Yamashita are able to consult with Robert Half’s clients, both domestic and international, on the challenges, needs, and hurdles they must overcome. They can go beyond recruitment and offer advice on who is the right candidate to fill this role, whether that be a domestic person or somebody from abroad with good Japanese language skills. They may even find the elusive, but highly sought-after, unicorn: someone half in Japan and half out.
“There are young Japanese workers who start in a Japanese company and then want to move to an international company,” explained Yamashita. “These workers may then come back to Japanese companies in their mid-forties or fifties.”
One path to this which Robert Half has noticed is for university graduates to join a consulting company, learn the supply chain methods for five years, and then return.
“They want to contribute to the development of their own country, so they come back to traditional Japanese companies,” Yamashita added.
Why It Matters
One reason that Oya and Yamashita feel that supply chain logistics in Japan lags far behind that found in the United States or other countries is that it isn’t viewed as equally important within traditional companies.
“There are various functions in a company—sales, marketing, finance, human resources—and supply chain is one of these. But in general, in Japan, I feel that it doesn’t get the same respect or visibility as the others, because supply chain is often seen as blue collar,” explained Oya.
But supply chain management is critical to the success of any business, whether a company is manufacturing a car or delivering fast-moving consumer goods to a customer’s doorstep.
““We’ve started seeing more Japanese companies trying to hire people coming from a global background and mind-set.””
One of the most important areas of supply chain management is sales and operations (S&OP), which is in charge of production and demand planning one month, one year, or two years out. Making S&OP more adept and resilient is growing in importance not only in Japan but the whole Asia–Pacific region as many international companies focus on APAC business.
A client that has been growing its overseas business and has its headquarters in Japan realized that, to win the global market, it needed to change its approach to supply chain management and bring S&OP up to speed. A specialty of Robert Half is helping Japanese companies bring international culture and methods from the United States and other countries into Japan, so the partnership is a perfect fit.
“We’ve started seeing more Japanese companies trying to hire people coming from a global background and mind-set,” noted Oya. “Mid-career hiring is something that traditionally hasn’t happened in Japan, but is becoming increasingly common. We’re seeing more people with 30 years of experience at American or multinational companies moving to big Japanese manufacturers with a very long history of hiring new grads and training them in their way, not hiring from outside.”
One of those seasoned veterans could be the missing talent to lead a transformation of your supply chain, and the Robert Half team are ready to partner with you to build resilience for today and the future.
Register now to learn, connect, and get inspired by Robert Half Japan networking events: roberthalf.jp
A Night of Stars and Stripes
Tokyo American Club’s New York Ballroom pulsed with energy—and music—on July 2 as the American Chamber of Commerce in Japan (ACCJ) marked the 248th birthday of the United States and its own 75th.
ACCJ members and partners celebrate Independence Day and 75 years as the voice of global business in Japan.
Photos by Miki Kawaguchi/LIFE.14
Tokyo American Club’s New York Ballroom pulsed with energy—and music—on July 2 as the American Chamber of Commerce in Japan (ACCJ) marked the 248th birthday of the United States and its own 75th.
Dubbed “A Night of Stars and Stripes,” the evening was an expansive celebration of American heritage and the enduring bilateral relations that connect the United States and Japan.
More than a Fourth of July bash, the event marked the diamond anniversary for the ACCJ. Organized by the Board of Governors, the party was the chamber’s largest gathering since the onset of the Covid-19 pandemic and highlighted the vibrant reengagement that has been underway throughout the year.
As more than 400 members, guests, and VIPs made their way into the ballroom, emcee Emily noted that, since its founding in 1948 with the support of General Douglas MacArthur, the ACCJ has been the most active and influential foreign business organization in Japan, fervently pursuing its mission to:
- further develop commerce between the United States of America and Japan,
- promote the interests of US companies and members,
- and improve the international business environment in Japan.
ACCJ President Victor Osumi surprised the crowd by singing the national anthems of Japan and the United States before delivering opening remarks. “There’s no budget problem,” he jokingly noted, explaining that he chose to perform these important songs himself because of his heritage, which fuels his passion for US–Japan relations.
“Having grown up in the US and Japan, both countries have greatly shaped my identity and values, and have given me a bicultural perspective that made me who I am today. I’m honored to serve as a bridge connecting our two great nations,” Osumi said.
“To our members and our incredible committee leaders, thank you for your involvement with the chamber, which drives everything we’ve accomplished over the past 75 years,” he continued. “And to our valued partners, thank you for working with us to strengthen the US–Japan economic partnership, which is one of the most important alliances in the world.”
Japanese Vice-Minister for International Affairs Takehiko Matsuo spoke next on behalf of the Ministry of Economy, Trade and Industry.
“The Japanese government continuously provides its strong support to all of you,” he said. “I believe, and I do hope, that the ACCJ could play a very important, very key role to further strengthen our two countries’ economic ties.”
US Ambassador to Japan Rahm Emanuel then shared congratulations via video, as he was traveling in the United States at the time and unable to attend.
“Since the birth of the chamber, Japan has emerged as a respected global leader in a multitude of areas—in business, technology, manufacturing, and most importantly, research and development,” he said. “Through the dedicated efforts of the chamber, and all the companies that make up the chamber, our two nations have worked side by side to make groundbreaking strides across the spectrum, from next-generation technologies to clean energy.
What we accomplish together in the years ahead will set a benchmark and will shape the lives of millions for decades to come. I wish all of you a very happy Independence Day and another 75 years of success as we build a future for the United States and Japan.”
Newly arrived Deputy Chief of Mission Katherine E. Monahan followed up these remarks with her own reminiscence of coming to Japan in 1987 on the Japan Exchange and Teaching (JET) Programme, as well as her past work with the ACCJ Financial Services Forum. “It was a really interesting and fun time,” she said. “I have a deep love of Japan, and a part of me has always been here. Japan is a really special place, and the things we do together are amazing.”
Monahan raised a glass to toast the birthdays of both the United States and the ACCJ, and the evening gave way to a rousing performance by legendary American guitarist Marty Friedman. Well known as the lead guitarist of American thrash metal band Megadeth, Friedman moved to Japan in 2004 to pursue his love of the country, language, and a desire to perform with Japanese musicians. He was named an ambassador of Japanese heritage by the Agency for Cultural Affairs in 2016.
“It takes a lot of motivation and kind of an insane story to want to come here to Japan and make a life here,” he said. “But I know all of you will agree with me that it’s probably the most cool thing that we’ve all done in our lives. Japan is like a country of dreams … and my dream came true in so many different ways because of Japan.”
Friedman performed as part of the generous support of iconic guitar maker Fender, which presented two Stratocasters—one manufactured in the United States and one in Japan—to the chamber. ACCJ President Victor Osumi joined Fender Senior Vice President APAC Giorgio Guerrini and Product Management Director APAC Masato Fujikawa onstage to receive the gifts.
Following another spectacular performance by Friedman, members and guests began networking as they were treated to a flavorful Fourth of July-inspired spread curated by Michael Anthony, executive chef of New York’s Gramercy Tavern. Anthony, who was brought to the event by Delta Air Lines in collaboration with Tokyo American Club and the ACCJ, got his start in Tokyo in the early 1990s. Anthony’s goal in crafting the Independence Day menu, he told The ACCJ Journal, was to “serve foods that connect with childhood memories of the holiday.”
To go along with the bites, Brown-Forman bartenders served up more-adult libations made with the company’s Jack Daniel’s Tennessee whiskey and Woodford Reserve bourbon, including the signature Woodford 75 cocktail, named in honor of the ACCJ’s diamond milestone.
The night’s theme of music continued across the way in the Brooklyn Suite, where ELAC, innovators of speakers and audio equipment for 98 years, presented an immersive sound experience featuring more than seven decades of classic American and Japanese vinyl.
The evening was made possible thanks to the generous support of Aflac, Boeing Japan, Delta Air Lines Japan, Google Japan, and GR Japan, who contributed at the highest level as Stars and Stripes sponsors, as well as Red, White, and Blue sponsors FedEx Japan, RGA Reinsurance Company, and Toyota.
Along with ACCJ President’s Circle member companies Cisco Systems, connectFree, and Eli Lilly Japan, and other partners, the community came together to deliver a night to remember as the ACCJ continues the mission it set out on in 1948: to be the voice of global business in Japan.
Partnership and Progress
At the start of 2024, The ACCJ Journal sat down with Victor Osumi as he took the helm as ACCJ president. As the heat of summer set in, we again joined him to gauge how the year he has dubbed one of reengagement is evolving, and where he sees the chamber amid its 75th anniversary.
ACCJ President Victor Osumi shares thoughts on the chamber’s active year of reengagement and 75th anniversary.
Photos by Shelley Mae Photography
Growing up in a diverse, dual-culture environment, Victor Osumi spent most of his early years in Los Angeles. He would also regularly visit Japan. When he moved to Florida for high school, he set out on a path that would lead him to the US Air Force and, ultimately, to his current role as managing director and president of Japan operations for Delta Air Lines, Inc., as well as president of the American Chamber of Commerce in Japan (ACCJ).
At the start of 2024, The ACCJ Journal sat down with Osumi to learn more about his very active role with the chamber and the path he saw ahead as he took the helm. As the heat of summer set in, we again joined him at Delta’s office near Shiba Park to gauge how the year he has dubbed one of reengagement is evolving, and where he sees the chamber amid its 75th anniversary.
You set out to focus on fostering partnership, embracing progress, and bridging to the future with excellence when you began your presidency. How are those goals progressing?
It has been going very well. For three years, Covid-19 put limitations on in-person interactions, but this year we are fully open and the ACCJ is taking advantage. The changes resulting from the pandemic bring opportunities not only for business but for us to refine ourselves as a chamber to best meet the needs of today.
We’ve had tremendous success in reaching these goals and reinforcing why the ACCJ is known as the voice of global business in Japan. I have to thank everyone on the Board of Governors for their hard work. In our meetings, I have asked each leader how they feel we could improve the chamber.
We identified three areas:
- Quality over quantity
- Committee focus
- Strengthening relationships
We promote 500–600 events each year organized by 60-plus committees. That is a lot. We have working groups assessing how best to leverage and focus the expertise of our membership to benefit the global business community.
Relationships are the lifeblood of the chamber, and an important task coming out of the pandemic has been to reengage in person with our member companies. In the first half of 2024, we visited many leaders—including the CEOs of more than 30 of our Corporate Sustaining Members—to discuss the state of business and the market, and to be sure that we are delivering what they need. I have enjoyed doing this together with many fellow board members and Executive Director Laura Younger.
When it comes to advocacy, we want to be sure that we are approaching the right people and are enhancing those relationships. There was a bit of a disconnect during the Covid-19 pandemic, so we have prioritized reengaging those efforts where needed, such as with the Keizai Doyukai [the Japan Association of Corporate Executives] and embassies.
We are making great progress, and our goal is to ensure quality, strengthen advocacy, and boost the voice of the ACCJ and the benefits of being a member.
How was this year’s visit to Washington?
The DC Doorknock—along with the Diet Doorknock—is one of the most important events each year for our advocacy, and those meetings were curtailed by the pandemic. The full resumption this year has reinvigorated the communication and bonds that are critical to strengthening bilateral relations and business.
In June, I joined fellow ACCJ leaders for this year’s visit to Washington. Everyone we met was more engaged with Japan. They wanted to know what the Japanese government and US businesspeople in Japan are thinking as they consider how the United States should approach the region. I feel we are reengaging in a constructive way and advancing important dialogues on a range of critical issues, including artificial intelligence (AI), quantum computing, semiconductors, cybersecurity, and space.
Digital initiatives are of particular urgency, and expanding cooperation with like-minded partners to align on the application and governance of AI, strengthen cybersecurity, and promote free and fair digital trade agreements is essential to the peace and stability required for ensuring a prosperous future for our nations.
One path to that is the Indo-Pacific Economic Framework for Prosperity (IPEF). How has that initiative progressed this year?
Yes, IPEF is one way in which Japan, together with the United States, can play a leading role in the region and build stable and resilient relationships with its neighbors. It has been good to see the progress made thus far—a very steady approach that isn’t rushed.
There is huge opportunity in the Indo–Pacific region—it’s one of the fastest-growing markets—and I believe that IPEF offers many areas for the ACCJ to explore. The bilateral trade relationship between the United States and Japan has improved, and Prime Minister Fumio Kishida’s visit to Washington in April highlighted this.
Infrastructure, technology, cybersecurity, and supply chains are all areas with great potential for development as a result of IPEF. There is room to improve, and there are challenges in the regulatory environment given each country’s own regulations and policies, but I see great potential. As the countries involved work on the next steps to realize the promise of IPEF, the ACCJ must continue to be part of the discussions.
Tourism is another area hit hard by the pandemic. How has the ACCJ been able to support its recovery?
Inbound tourism is vital to the economy and has seen an incredible resurgence this year. Japan is on track to break the record of 31.88 million visitors, set in 2019. When Ambassador Rahm Emanuel arrived in January 2022, the number of foreign nationals entering the country that month was 17,800. There was pressure from many areas and organizations to get the borders reopened. Ambassador Emanuel and his staff were key to making that happen, and the ACCJ was able to serve as a conduit between our members and the Japanese and US governments. Japan is thriving again, and with events such as next year’s Expo 2025 Osaka, Kansai on the horizon, this economically important trend looks certain to continue.
Also important to our member companies is diversity, equity, and inclusion. Has there been progress on Japan’s support for DEI?
DEI is so very important to attracting and retaining top talent for our members. I feel everyone is conscious these days about social responsibility, and DEI helps each company bring its core values to the forefront.
Japan remains an outlier among G7 countries in recognizing same-sex marriages. While not all the court rulings have been resoundingly positive, I do feel we have made some progress in the Diet, and we renewed our viewpoint in support of marriage equality. Ambassador Emanuel has been extremely supportive of diversity and has helped a great deal. I think that we are doing the right thing socially by supporting marriage equality and DEI initiatives, of course, but the issue is also of great importance to business. We must continue to aggressively support this movement.
From left: ACCJ Executive Director Laura Younger, President Victor Osumi, US Deputy Chief of Mission Katherine E. Monahan, and Japanese Vice-Minister for International Affairs Takehiko Matsuo at A Night of Stars and Stripes on July 2. (Photo: Miki Kawaguchi/LIFE.14)
Where do you see the ACCJ as we mark our 75th anniversary?
The ACCJ has adapted to many challenges and changing environments over the past 75 years, and the Covid-19 pandemic was a real test of our resilience as an organization. Our strength showed, and we learned a lot that is helping us rethink how we work, how we communicate, and how we support each other.
The vibrancy of the ACCJ was on full display on July 2, when we gathered at Tokyo American Club for A Night of Stars and Stripes, our big bash to celebrate the Fourth of July as well as our own 75th birthday. The event was organized by the Board of Governors and we had more than 400 attendees. It was a pleasure for me to sing the US and Japanese national anthems. I’m honored to serve as a bridge connecting our two great nations. My background, having grown up in
both countries, is what drives my passion for US–Japan relations and my current role as ACCJ president.
It was also an honor to welcome representatives of the US and Japanese governments to speak. Their close collaboration at our many engagements and briefings throughout the year are vital to the success of our mission. Vice-Minister for International Affairs Takehiko Matsuo joined us from the Ministry of Economy, Trade and Industry, and Deputy Chief of Mission Katherine E. Monahan attended from the US Embassy. Ambassador Emanuel shared remarks in a video, as he was traveling in the United States at the time. It was an incredible evening.
I would also like to say thank you to all our members, and especially to the founding companies that are still with us today—Bank of America, J.P. Morgan, Citi, United Airlines, and AIG, along with Coca-Cola and GE, both of which joined a few months after the founding. Since 1948, the continuity that these members represent is a testament to the staying power of our collective voice.
I’m very proud of what we’ve accomplished. As a member-led organization, the power of the ACCJ comes from our 3,000-plus members. My mission as president, and the mission of the Board of Governors, is to ensure that we are bridging to the future with excellence. Our incredible members and committee leaders—as well as the dedicated office team that works so hard behind the scenes—come together to drive everything we’ve accomplished over the past 75 years, and there are many more years of partnership and progress to come.
Workforce Matters
Japan has long been seen as an attractive destination for companies expanding operations globally. This trend is more obvious today. But what causes foreign capitalists to succeed or fail in Japan?
What causes foreign capitalists to succeed or fail in Japan?
Japan has long been seen as an attractive destination for companies expanding operations globally. This trend is more obvious today. Japan boasts a robust infrastructure—from transportation to energy to telecommunications—and is considered an ideal hedge against the political instability, or “country risk,” that is prevalent in other Asian countries. Expected cost reductions fueled by the weakened yen have led many companies to believe that now is the time to enter the Japanese market.
Common Traits of Failure
Despite the promising situation, some businesses have not achieved the expected results. A survey conducted by the Ministry of Economy, Trade and Industry revealed that struggles with talent acquisition and Japan’s unique nature, such as the preference for homogeneity, caused them to fail. These reasons may seem plausible, but what really happened?
Unsuccessful businesses did not do well because they brought their own cultures and practices to Japan without attempting to adapt. Japanese people have a hard time accepting foreign capitalists who expect them to adapt to their methods, and this often leads to a sense of discomfort among local talent. Integrating into Japanese culture is essential.
Key to Success
Since 2019, there have been numerous changes to Japanese labor law, with more revisions planned for the coming years. Workforce management has become more complex, with legislation impacting work time management, payroll processing, and social security-related filings.
For example, Article 36 of the Revised Labour Standards Act (Overtime Work and Working on Holidays) requires companies to submit a dedicated form to the Labour Standards Bureau for each employee who is expected to work on a holiday or longer than the prescribed hours.
The maximum working hours per day, month, and year must be agreed upon by the employee and employer. The so-called “36 agreement,” which specifies the agreed conditions, is one of the most important documents in workforce management. Yet, it is often treated as a piece of routine paperwork, filed without a thorough review. In fact, we have seen many cases where this paperwork has not even been submitted.
Regulatory authorities place considerable emphasis on proper filing. Failure to comply may result in disclosure of the company’s name. Penalties may also be levied, including up to six months in prison or a maximum fine of ¥300,000.
To succeed, foreign-invested companies must understand how the Japanese labor system functions and how to ensure workforce management compliance. Successful companies comply with the applicable laws and regulations in Japan and have implemented an effective talent strategy that is flexible and rooted in the region.
Given the complexity, it is best to outsource workforce management entirely to a group of specialists. While this may not seem like a distinguishable advantage over competitors, compliance is crucial for running a successful business. Securing reliable resources to handle these needs with confidence is the first step toward successful entry into the Japanese market.
Dayforce provides payroll and labor outsourcing services through Workcloud, which offers:
- One platform: supports payroll, attendance, social insurance, year-end adjustment, and onboarding management.
- Excellent user interface and system scalability: intuitive user interface (UI) does not require manuals and allows for additional development.
- Bilingual support: all pages have the same UI in English and Japanese.
- Timely response to legislation: enhancing features and ensuring compliance with newly enacted laws.
Article supported by Actus HR Solutions, KK
For more information and to learn how Dayforce Workcloud can help your business, visit https://dayforce.co.jp/contact.
Tax Surge Ahead
An increase in taxes on high-net-worth individuals is on the horizon. Here's how it will impact business and real estate owners beginning January 1, 2025.
How an upcoming income tax increase will impact high-net-worth individuals and business owners.
A new measure to be introduced in 2025 will increase taxes on high-income individuals. With the effective income tax rate set to rise to 22.5 percent or higher, business and real estate owners who plan to realize gains from the sale of real estate or stocks should be aware of the impact on their taxable income after January 1, 2025.
Income tax in Japan consists of aggregate taxation on certain types of income. These include employment income, business income, and real estate income. The total from each type is summed and taxed at progressive rates. The national income tax rate ranges from five to 45 percent (plus 10 percent for local taxes).
Income from the transfer of real estate, and some financial income, is subject to separate taxation. Income from the transfer of real estate (long-term holdings) and stocks is taxed at a flat rate of about 15 percent (plus five percent local tax).
This can give rise to a phenomenon where the portion of total income derived from the transfer of real estate and stocks increases while the actual overall tax rate decreases, thus lowering the effective income tax burden for high-income earners. From the viewpoint of a fair taxation system, the tax burden rate will be raised to 22.5 percent (for the national tax portion), and possibly higher for incomes above a certain level.
How It Works
First, the standard income amount is calculated by totaling the amount of income (both aggregate assessment income and separate income) for which a tax return is filed each March and adding financial income that is not included on the tax return. This includes income where the withholding tax suffered is treated as the final liability, such as dividends from listed stocks, small dividends from unlisted stocks, and income from special accounts.
Special accounts are those which the taxpayer has selected to hold listed stocks. The dividend income, as well as income from the transfer of listed stocks, suffers withholding tax at the source. This is treated as the final liability for these types of income, so they are not included on an income tax return.
Next, the standard income amount is multiplied by 22.5 percent (national tax) after deducting the special deduction (¥330 million). If the total exceeds the regular tax amount, the difference will be levied as additional tax due.
In addition to those who plan to sell real estate or stocks, individuals with high financial income from special accounts will be affected by this amendment.
Even for non-residents of Japan, the tax increase will apply to transfers of real estate located in Japan and transfers of Japan-sourced stocks.
Corporate owners and major investors who plan to sell their companies, individuals who plan to sell their real estate, and high net worth individuals who have large amounts of financial income are advised to understand the impact of this tax increase and consider how to respond.
For more information, please contact Grant Thornton Japan at info@jp.gt.com or visit www.grantthornton.jp/en
Disclaimer: Opinions or advice expressed in the The ACCJ Journal are not necessarily those of the ACCJ.
Happy Independence Day 2024!
As Americans around the world celebrate the nation’s 248th birthday, the Fourth of July provides a chance for those of us in Japan to reflect on what has already been a historic year for US–Japan ties.
A special message for ACCJ members from US Ambassador to Japan Rahm Emanuel
As Americans around the world celebrate July Fourth, the day provides a chance for those of us in Japan to reflect on what has already been a historic year for US–Japan ties. Prime Minister Fumio Kishida’s state visit to Washington in April, the first by a Japanese prime minister in nearly a decade, marked a high point in our two nations’ long relationship, with numerous announcements of cross-border investments and collaboration.
With economic security directly linked to national security, it is paramount that the United States and Japan leverage their respective strengths to cooperate in the development of critical and emerging technologies and the diversification of supply chains.
As next-generation technologies such as artificial intelligence (AI) power the future of the global economy, initiatives like the $110 million AI partnership between four top universities in the United States and Japan, announced during the state visit, will allow us to be at the forefront of a field that is fast becoming embedded in every area of business and life.
Japan’s ambition to become a global high-tech and digital hub of research and innovation was given a boost by the announcement of investments in the country’s digital sector from Microsoft ($2.9 billion), Google ($1 billion), and Amazon Web Services ($15 billion).
“With so much of the world digitally interconnected, it is imperative that our secrets are kept safe, our privacy and data protected, and our supply chains secured.”
Amid the country’s digital transformation, cybersecurity has become a priority. With so much of the world digitally interconnected, it is imperative that our secrets are kept safe, our privacy and data protected, and our supply chains secured. During my recent trip to Fukuoka, we launched the US–Kyushu Cybersecurity Partnership Initiative. Bringing together leading US and Japanese technology companies with partners in civil society, law enforcement, and academia, the initiative is designed to strengthen the cybersecurity ecosystem in an area of Japan that is becoming critically important to the global economy.
While longstanding partners in space exploration and research, the United States and Japan are collaborating in every area of this flourishing sector. Decades after the Apollo program, the United States is preparing to return to the moon. The Artemis program will see the United States and Japan join forces on this momentous project, with an American astronaut once again stepping onto the lunar surface, this time accompanied by a Japanese astronaut. The coming years promise to be ones full of “giant leaps” in space science and human exploration.
Meanwhile, Japan continues to be the No. 1 investor in the United States, with $775 billion in direct investments. This confidence was reflected in decisions by major Japanese companies to expand operations or build new facilities across the United States. The likes of Toyota, Honda Aircraft, Daiichi Sankyo, and UBE all deepened their presence in North Carolina, Ohio, and Louisiana, respectively, with millions of dollars of commitments to those local communities and economies. The investments are also a vote of confidence in both US manufacturing capability and the skills of US workers.
“None of our efforts would be possible without the underlying people-to-people ties … We are fortunate to have committed partners in the American Chamber of Commerce in Japan.”
As climate change wreaks havoc across the world, the United States and Japan remain steadfastly committed to accelerating energy transition while promoting clean energy. We have entered a new era where renewable energy is a major driver of investment decisions. The next challenge for Japan is deploying renewable energy at scale, but regions such as Hokkaido, where natural resources are plentiful, provide boundless opportunities for US energy companies already established in the field.
Unlike fossil fuels, which are subject to the unpredictability of world events and authoritarian regimes, renewable energy is clean, secure, and the employer of tomorrow.
None of our efforts would be possible without the underlying people-to-people ties. To lay the foundation for the next generation of US–Japan relations, we announced new educational endowment initiatives to support scholarships for high school and university exchange students. Together with our established Fulbright and Mansfield programs, these will inspire and inspirit the future custodians of our special relationship.
We are fortunate to have committed partners in the American Chamber of Commerce in Japan (ACCJ). What we accomplish together with the US–Japan alliance over the next year will shape the future of the Indo-Pacific region—and the world—for decades to come.
I wish all our ACCJ friends and partners a very happy Fourth of July.
Disclaimer: Opinions or advice expressed in the The ACCJ Journal are not necessarily those of the ACCJ.
May 2024 Event Highlights
View a collection of photos from the ACCJ’s May 2024 events.
From left: Alternative Foreign and Direct Investment (AFDI) Committee Chair Paul Lee, ACCJ President Victor Osumi, Director-General of the Office of Foreign Direction Investment Promotion at the Cabinet Office Mitsuru Myochin, and Special Adviser Jennifer Rogers are seen together after the AFDI event on May 27 at Tokyo American Club.
The American Chamber of Commerce in Japan hosted a wide variety of events in May. Among these were:
- How Intensified US-China Strategic Competition Is Reshaping Indo-Pacific Economic Interdependence
- Preparing for the AI Revolution: Executive Business Briefing with Joe Hart, Dale Carnegie President and CEO
- Breakfast in the Boardroom: Breaking Barriers in Japan’s Corporate Leadership
- International Spring Meet and Greet in Kobe
- The 33rd ACCJ/NIS Chubu Walkathon
- PMDA’s International Vision in New Midterm Targets
- Promoting FDI in Japan: A Discussion with Mitsuru Myochin, Director-General, Office of FDI Promotion, Cabinet Office
- IBM’s Compliance Landscape: Building a Culture of Trust and Integrity in a Global Organization
Here are some of our favorite highlights.
2024 DC Doorknock
During the 2024 DC Doorknock, ACCJ delegates met with leaders in Washington, DC, to discuss security, economic, and strategic partnerships.
The 2024 ACCJ DC Doorknock delegates gather in front of the US Capitol.
From June 3 to 6, American Chamber of Commerce in Japan (ACCJ) leaders made their visit to Washington, DC, as part of the chamber’s annual DC Doorknock visits. These trips are an important part of the ACCJ’s advocacy efforts and strengthen US–Japan relations.
ACCJ President Victor Osumi was joined by Special Advisor Steve Briggs, Governor Hans Klemm, Chairman Christopher LaFleur, Executive Director Laura Younger, and Bank of America's Tamao Sasada.
A Bishop Scholar’s Journey
As his time as the first Bishop Memorial Scholar draws to a close, we sit down with Matthew Trani to learn about the experience and how he hopes to maintain his ACCJ connections.
As his internship ends, Matthew Trani shares impressions of the ACCJ and a message for future recipients.
Following the tragic deaths of Bill Bishop, his wife Izumi, and their daughter Sophianna on Christmas morning 2022, the American Chamber of Commerce in Japan (ACCJ) and the United States–Japan Bridging Foundation came together to honor their legacy. Launched in July 2023, the Bishop Family Memorial Scholarship Fund brings US students to Temple University, Japan Campus, where Bishop was a lecturer and board member. It also provides an internship at the chamber.
The ACCJ Journal interviewed the first recipient, Matthew Trani, last December, two months into his internship. As his time as a Bishop Memorial Scholar draws to a close, we again sat down with Trani to learn about the experience and how he hopes to maintain his ACCJ connections.
How do you feel about your internship ending?
Odd, because it almost feels like I’m leaving the community that I’ve been attached to—almost to a point of dependency—for the past eight months. There aren’t many places where you can have a working relationship and be able to just casually talk to people in Japan as a foreigner. That feeling hasn’t changed since our first interview.
How will you maintain your ACCJ relationships after you leave?
A lot depends on if I can convince my new company to become a member. If that were to happen, then I would potentially be back within a relatively short time.
But I think I can still connect regardless, as I’ve met as many members outside the chamber as I have through the chamber; they’re all in the same circles. When I get invited to somebody’s house, there will be a professor from Temple there, or someone from Tokyo American Club or the embassy. The network is so tight that they’re never more than one connection away.
Did making connections remain your number one goal?
A little bit. The priority did change from the beginning of the year. Making connections was great, but I needed a job to continue living here. A lot of the companies to which I was thinking of applying are ACCJ members, but I needed to figure things out on my own, which I did. The biggest difficulty is switching from a student visa to a work visa. I was very lucky to find a company that had the patience to do that.
Now, it should be a lot easier to use those connections in the future. So, I would say my goal didn’t change, but now that I’ve achieved my secondary goal, I can go back to my primary goal, which is to continue making and maintaining connections.
Beyond connections, what did you gain most from this experience?
I probably wouldn’t have had the chance to work in a corporate environment where I interacted with so many executives all at once. It’s kind of [remarkable] seeing somebody where it’s like, “Oh, you’re the CEO of Bloomberg Japan, which is the same company my dad works for in New York.” But this is someone that my dad would not usually be able to talk to. And it’s very different having Victor Osumi, as the president of Delta in Japan, saying hi to you and being on a first name basis.
Matthew Trani with ACCJ Executive Director Laura Younger
Where were you most involved at the ACCJ?
That changed over the course of the year. When I started, I was going to a lot of events and getting most of my networking connections early on. Then it shifted to more back-office work, and I worked a lot in Membership and we did some assignments on the competitive advantage of the ACCJ. That project took time to flesh out and get it to how we wanted it for the board.
On the whole, I definitely preferred the administrative work, with the exception of spreadsheets. I think with networking and helping at events it becomes much of the same routine, but when you deal with administrative materials, you can think a lot more critically. I really like jobs in which you can think deeply and try to solve problems.
What was your favorite event?
I learned so much from attending committee meetings. Often, I would think, “I didn’t know that, but that’s very interesting.” Or they would discuss things I’ve noticed in Japan but didn’t have the opportunity to say out loud.
We were at a meeting of the Tourism and Hospitality Committee and they were talking about how Japanese people aren’t going abroad, so domestic airlines are empty. Typically, it’s Japanese people who take those airlines, while foreigners take airlines from their home country.
It’s really crazy that a lot of the time you don’t have the opportunity to voice things like that, but the committees do so and work toward resolving those issues through advocacy papers and other things.
What would you tell future Bishop Scholars?
This is the best opportunity in Japan for a college student, one you never imagined you’d get. That’s what it was for me; I never expected that I would have the opportunity to do this during my time in Japan, and I never planned around it when I originally booked my study abroad. You can’t plan on where you’re going. I would say to all the Bishop Scholars who come after me, I’m sure you probably feel the same, so just roll with it and see where this opportunity takes you.
Trani completed his internship with the ACCJ in late April and is expected to begin working in Japan in mid-June, after having graduated from Hofstra University in late May.
April 2024 Event Highlights
View a collection of photos from the ACCJ’s April 2024 events.
ACCJ President Victor Osumi, CEO Forum members, Young Professionals Forum leaders, and speakers from the Learning from Executives event after the CEO Forum x YPF Collaboration event at the Otemachi One Tower on April 24.
The American Chamber of Commerce in Japan hosted a wide variety of events in April. Among these were:
- Navigating Cybersecurity Staffing Challenges in Japan
- It’s a Small World: A Multinational Networking Event
- Marketing Teams that Drive Transformation: Lessons from Panasonic Connect
- Ten Points on Business Dinner with Jim Weisser
- Earth Day 2024
- ACCJ/NAJAS Business Leaders Series with Steve Briggs, Kraft Heinz president for Northeast Asia
- Law Enforcement and Foreign Residents: A Look at the Tokyo Bar Association Study
- Learning from Executives Series (CEO Forum x YPF Collaboration Event)
Here are some of our favorite highlights.
ISA 600 Explained
The International Federation of Accountants has updated the International Standard on Auditing 600 (ISA 600), and the revised standard went into effect on December 15, 2023. What are the advantages and disadvantages of the revisions when it comes to group audits?
What are the pros and cons of the latest update to the International Standard on Auditing?
The International Federation of Accountants has updated the International Standard on Auditing 600 (ISA 600), and the revised standard went into effect on December 15, 2023. What are the advantages and disadvantages of the revisions when it comes to group audits?
Firstly, a group audit refers to an audit of consolidated financial statements where the parent company and its subsidiaries are viewed as a single economic entity or “group.” It is often conducted by the parent company’s auditor, known as the group auditor, and encompasses the financial information of the parent company and its subsidiaries. As the group auditor will provide an opinion on the consolidated financial statements, it is essential that they are satisfied with the work completed by component auditors or local audit teams.
The group audit is necessary because businesses often operate through different legal entities and across different geographical locations. For an accurate view of the group’s financial situation, auditors must assess financial statements at both the parent and subsidiary levels and follow the standards established by the relevant auditing bodies.
International Standard on Auditing 600 (ISA 600) (Revised), Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors) deals with special considerations that apply to a group audit, including when component auditors are involved. The standard is effective for audits of group financial statements for periods beginning on or after December 15, 2023, and aligns with recently revised standards which emphasize the assessment of risk, including ISQM1 and ISA 220 (Revised) and ISA 315 (Revised 2019). There is increased emphasis on the responsibilities of auditors relating to professional skepticism, planning and performing a group audit, two-way communications between the group auditor and component auditors, and documentation.
The changes are intended to:
- Encourage proactive management of quality at the group engagement and the component levels
- Keep the standard fit for purpose in a wide range of circumstances and in a developing environment
- Reinforce the need for robust communication and interactions during the group audit
- Foster an appropriately independent, challenging, and skeptical mindset on the part of the auditor
ISA 600 (Revised) sets out the responsibilities of the group auditor for providing the audit opinion on the group financial statements, including components such as subsidiaries, associates, joint ventures, and non-controller entities.
Advantages
Viewed from the component auditor’s side, relying on a variety of useful information regarding management’s rationale from the group auditor can reduce the risk of material misstatement and detection risk when conducting audit components.
One significant change is the introduction of the risk-based approach as a framework for planning and performing a group audit engagement. This means more focus on identifying and assessing the risks of material misstatement and performing further audit procedures in response to the assessed risks. The group auditor develops initial expectations and, based on these, may involve component auditors in risk assessment procedures, as these individuals may have direct knowledge and experience with the entities or business units that could be helpful in understanding the activities and related risks.
According to the standard, the group engagement partner may take responsibility for directing and supervising component auditors in different ways, such as:
- Discussing identified and assessed risks, issues, findings, and conclusions
- Participating in the closing or other key meetings between the component auditors and component management
The discussion between the group auditors and component auditors provides the opportunity to understand how and where the entity’s financial statements may be susceptible to material misstatement due to fraud. This is done by considering external and internal factors affecting the group that may create an incentive or pressure for group management, component management, or others to commit fraud. The discussion between group engagement partners and other key management team members also provides a chance to identify risks of material misstatement relevant to components where there may be impediments to the exercise of professional skepticism. In other words, the involvement of the group auditor enhances the effectiveness of component auditors.
ISA 600 (Revised) strengthens and clarifies the importance of two-way communications between the group auditor and component auditors as well as various aspects of the group auditor’s interaction with component auditors. However, there are many types of restrictions that may exist, such as on access to people and information (e.g., component management, those charged with governance of component, component auditors) as well as audit documentation.
Viewed from the group auditor’s side, the revised standard provides guidance on ways to overcome restrictions. The group auditor may be able to visit the location of the component auditor or meet with the component auditor to review their audit documentation. They may also be able to review the relevant audit documentation remotely when not prohibited by law or regulation and request that the component auditor prepare and provide a memorandum that addresses the relevant information.
Disadvantages
The application of ISA 600 (Revised) may also bring some downsides.
According to the requirements, the role of group auditor increases, as does the workload of component auditors. The group auditor may involve component auditors to provide information or perform audit work to fulfill the requirements of the standard.
Component auditors can be—and often are—involved in all phases of the group audit. The group auditor shall take responsibility for the nature, timing, and extent of further audit procedures to be performed, including determining the components at which to perform further audit procedures. This responsibility is demonstrated through meeting the requirements of the consolidation process and considerations when component auditors are involved.
Communication
ISA 600 (Revised) includes enhanced documentation requirements and application material to emphasize the link to the requirements of ISA 230 and other relevant ISAs. The required documentation includes:
Basis for the group auditor’s determination of components
Basis for the group auditor’s determination of the competence and capabilities of component auditors
Documentation of the direction and supervision of component auditors and the review of the work
Additional considerations when access to audit documentation is restricted
The strength and clarity of the importance of two-way communications between the group auditor and component auditors in the standard are likely to result in more work for the group engagement team. This is particularly true regarding the enhanced responsibilities in evaluating the component auditor’s communication and the adequacy of their work, the sufficiency and appropriateness of audit evidence obtained, and communicating with group management and those charged with governance of the group. References in the standard to the definition of “engagement team” includes the group auditor and component auditors.
As mentioned, the group auditor will involve component auditors and clarify the instructions for the risk-assessment procedures. However, in practice, there are some instructions from the group auditor that may not be suitable for component auditors, and this can lead to some aspects of the instructions not being effective.
These changes to the standard will take time to implement, comply with, and complete for both the group auditor component auditor sides.
Generally, both sides should make sure that they understand the new requirements and that audit methodologies are updated accordingly and in a timely manner. They should also reassess the models being used for considering component materiality and aggregation risk to determine whether they are still appropriate.
For more information, please contact Grant Thornton Japan at info@jp.gt.com or visit www.grantthornton.jp/en
Assisting Business
With an emphasis on teamwork the ACCJ Sales Support Alliance supercharges the chamber experience by bringing together members across industries to share connections, knowledge, and help one another build business success.
The Sales Support Alliance supercharges ACCJ members’ networking opportunities with monthly meetings and unselfish teamwork.
In many sports, one player basks in all the glory of a score while another enjoys lesser accolades for their assist. Ice hockey spreads the wealth a bit more with a secondary assist—the pass before the pass that leads to the goal—and all three players earn a point in their stats.
This emphasis on teamwork is the same idea that forms the foundation of the American Chamber of Commerce in Japan (ACCJ) Sales Support Alliance (SSA). Founded in 2019 by Sales Development Committee Co-Chairs Eric Wedemeyer and Kjell Yadon, the SSA is designed to add value for committee members and guests by setting up the assists that lead to a business win.
Wedemeyer and Yadon describe their committee as horizontal rather than vertical as it serves ACCJ members across industries and company types. This broad reach amplifies the network effects and helps the SSA “supercharge everybody’s ACCJ experience.”
As an organization built on community and networking, the lifeblood of the ACCJ is serving up opportunities to its members. The SSA infuses this with the unselfish teamwork that leads to long-term success. Members introduce each other to new contacts in the hope that those fellow members will find business, even if there is no direct benefit to themselves—the pass before the pass that leads to the goal.
“In a networking situation, when you meet a new person at an ACCJ event, someone you know could very well be of use to the person you’re talking to, it becomes a richer experience if seen as an opportunity to introduce not just yourself, but also your contacts,” explained Wedemeyer. “If that results in a valuable business connection between two other people, that’s great. It’s a nice thing to do, it feels good, and the introduction will get paid back over time.”
J.R. Best, an SSA regular, found himself on the receiving end of an assist a couple of years ago. “David Clement connected me with the athletic director at [the American School in Japan],” said the co-founder of Hawaii-based Sports Camp of America (SCOA). “His daughter ended up being a junior counselor at SCOA’s summer camp, and she was fantastic.”
“In a networking situation, when you meet a new person at an ACCJ event, someone you know could very well be of use to the person you’re talking to, it becomes a richer experience if seen as an opportunity to introduce not just yourself, but also your contacts.”
SSA meetings regularly feature alternating small-group sessions and large-group discussions where attendees refine their self-introductions, sharpen their listening skills, and practice introducing other members to the group. This creates a feedback loop that allows attendees to reflect on their message and understand if their main point is coming across. For Japanese salespeople, it’s a chance to build confidence presenting in English in a comfortable, supportive, informal setting.
“By explaining my business to the people around me, I am able to look at myself objectively—what I am doing now, what I want to do, whether I am overreaching,” said Naoki Hioka, president of translation and localization company MedicaLingual, Inc. Hioka feels he has been able to identify issues and find the best path forward for his business thanks to SSA meetings.
Another feature of SSA meetings is the “Expert Corner,” where participants share knowledge and tips on a sales topic of interest. Recent topics have included using generative AI as a sales tool and post-Covid changes in lead generation strategies. Because SSA members represent so many different industries and job descriptions, these discussions generate an illuminating range of perspectives.
The name Sales Support Alliance might lead some to assume that only salespeople stand to benefit from the meetings, but Wedemeyer and Yadon stress that this is far from the truth. More than half of attendees are not in formal sales roles.
“Everyone is selling something,” said Yadon. “Many of our attendees are running their own companies or are responsible for promoting a company function internally. Sales skills always come in handy.”
Kreston ProWorks Business Development Manager Luc Swamika shared how he has benefitted from an introduction made at an SSA meeting. “Through the program, we forged a strong, lasting partnership and developed a mutually beneficial referral system that’s driving value for both our companies. Most importantly, we’ve built a relationship of trust and deep understanding with a valued partner.”
“SSA meetings regularly feature alternating small-group sessions and large-group discussions where attendees refine their self-introductions, sharpen their listening skills, and practice introducing other members to the group. ”
SSA meetings are open to non-committee-members, and usually half of attendees are first-timers. But once in the door, many get hooked and thrive on repeat attendance, building relationships over time.
Wedemeyer and Yadon describe the SSA as a momentum machine. Month to month, the results may look piecemeal, with people coming in with different sales targets and networking expectations. But over time, the SSA’s connections multiply as members get to know one another and build the trust necessary to make new introductions with confidence.
That momentum changed a bit during the coronavirus pandemic. Like most groups, productivity waned as meetings were forced to go virtual. Now, the Sales Development Committee is rebuilding the SSA as the in-person gathering it was before Covid-19. With more and more members joining, setting up the assist and scoring the winning goal is within everyone’s reach.
The next SSA meeting will take place on May 22 in the American Room at Cambridge Innovation Center. If you enjoy the personal relationship building of business, or just want to get together to chat, the SSA is waiting for you.
March 2024 Event Highlights
View a collection of photos from the ACCJ’s March 2024 events.
ACCJ leaders and inspirational mentors Sarah Bader, Ginger Griggs, Elizabeth Handover, Deborah Hayden, Azusa Koike, Mari Matthews, and Catherine Ohura shared lessons on career-building and more at an event honoring International Women’s Day on March 13 event at Tokyo American Club.
The American Chamber of Commerce in Japan hosted a wide variety of events in March. Among these were:
- The Evolving Healthcare Landscape: Trends in the Use of Medicines and Customer Engagement in Japan
- Executive Perspectives on the Post-Covid Workplace
- Japan Fintech Festival x ACCJ FinTech Panel
- Miracles through Partnership: Improving Japanese Healthcare through Collaboration and Entrepreneurship
- Speed Mentoring to Celebrate International Women’s Day
- How Can Successful M&A Unlock the Potential of Companies in Japan?
- The Likability Advantage
- The Future of Television: Streaming and Disruption in the Media Industry
- Cybersecurity Lessons from Ukraine
- Business Strategy Series: From Nada to the World: Learning from Hakutsuru Shuzo's Overseas Strategy
Here are some of our favorite highlights.
