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The Four Types of Strategic Leadership that Japan Needs to Embrace
Written by Timothy Connor
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For years Japanese companies looking to go global and foreign capital companies looking to grow in Japan have struggled to attract and retain the appropriate leadership talent-linguistically competent, culturally intelligent, with an agile growth mindset-within the context of the traditional Japanese employment ecosystem. The COVID pandemic hit and shed a bright light on the enduring issues surrounding employment flexibility, the talent gap, and particularly that of executive leadership in Japan.
The need for quick action and flexibility also exposed the rigidness of traditional employment models and leaders who were not able to adapt and grow. It brought to the forefront the immediate need for more flexibility in how all companies approach leadership and employment in Japan.
The limits to traditional “permanent” leadership are not new, but Japan has been unable to effect or accept change. But now the lack of “global” level talent in the traditional employment system has reached the point that both Japanese and foreign companies are losing the ability to compete in both the Japanese and global economies. Attracting executive leadership talent that can lead and grow a business whether on site or remotely should be every company’s top priority now.
There is clearly a need for new strategic leadership solutions in Japan. There are two distinct types or approaches to strategic leadership that Japan needs to embrace to become more flexible and competitive in the global economy. The labor market in Japan overall needs to embrace more flexibility, and change should start at the top.
Interim Leadership
Perhaps the most obvious need is for an interim leadership solution when there is an unanticipated “gap” in leadership. Hiring a C-level permanent leader is a time consuming and important process and HQ is right to take their time to get it right. In the meantime, the business needs a leader. A seasoned Japan experienced leader can often step in to take the reins of an existing business to ensure continuity, maintain team morale, and preserve the all-important trust relationships with business partners in Japan.
Two potential benefits of an interim leader are one, that leader can parachute in and provide HQ with a fresh, third party view or even analysis of how things have been going on the ground. Being the new eyes and ears of HQ can create a deep level of trust between HQ and the Japan leader and shed light on the kind of leadership skill set that is needed. Two, the interim leader may end up being the best final choice for the permanent C-level role, once they have been on the ground, seen what might need to be done, and gained the trust of the teams.
Transformation Leadership
Transformation leadership can be an extremely compelling solution in certain circumstances. One of the aspects of the gap between HQ and Japan that is enduring and perhaps the most frustrating is the speed of change in Japan. As much as people read about it, hear about, even witness it, change in Japan can take three times longer than anywhere else. This is even more difficult for a new expat to effect. An experienced Japan leader can often parachute in with a specific mandate, and if that leader has the cultural intelligence and linguistic skills, effect change in a Japanese business environment faster than an existing leader or new expat from HQ. Change will still take longer than most other countries, but a seasoned transformation leader with Japan expertise can speed things up.
Another form of transformation leadership is when there is a special or new project that needs to be implemented. The existing CEO or Country Manager probably already has their hands full running the existing business. A transformation leader can come in and on an interim basis, launch a new project or initiative without straining existing leadership resources. This could also be termed “change” leadership in terms of implementing a new business project or driving a digital transformation that needs to be handled by a “third” party.
The Flexibility of Strategic Leadership
The beauty of strategic leadership is its flexibility. These strategic roles can be non-exclusive and for a specific term, such as one year. Moreover, they can be structured to suit the needs of the Japan business. This is particularly attractive to SMEs who cannot afford and do not need a full time C-level, such as CFO or CMO, but desire to have that kind of deep expertise. Many new and growing businesses would benefit greatly by having a C-level executive for only two or three day a week over a specified period. Additionally, these non-exclusive and potentially non-full time engagements allow you to access a much wider pool of experienced executives with deep Japan experience.
The Japanese market is like no other and thus leadership solutions also require out of the box thinking. There is a vast experienced pool of executives who may have been sidelined in the game due to rigid hiring practices or organizational thinking that remains traditional and inflexible but who have the kind of experience or entrepreneurial talent that traditional employment policies do not recognize. It’s time for Japan to embrace these types of strategic leadership to bring more flexibility to the labor market and tap into the deep pool of market experience to ramp up productivity and develop a new layer of young leaders.
The Five I’s that Japanese Customers Expect (But Won’t Tell You)
Written by Timothy Connor
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If Omnichannel was Brand 2 Customer, Omnichannel 2.0 or New Retail puts the customer in the center of every possible-brand related interaction and ecosystem. This is particularly true in Japan. The most highly developed and competitive consumer market in the world also has the most discerning customers. Some may say Japanese customers are demanding, but a better way to look at them is in terms of expectations. Japanese customers have a much wider range of expectations of a brand, across all their potential interaction paradigms. And Japanese customers expect brands to know what these expectations are, and to act in certain ways without having to tell them. You won’t get this intelligence from a standardized VOC survey. These are the five “I”’s that Japanese customers expect of companies and brands.
Immersive
Japanese customers expect brands to be wherever they (the customer) happen to want them to be. That means as a brand or company, you must ensure the customer is immersed in the experience in ways that are nearly subconscious but in the Japanese context. By gathering as much data from as many potential touch points as possible, smart brands will use culturally intelligent AI to work the data and predict where a customer will want to interact with the brand. This doesn’t mean you have to always be in direct touch with the customer, it means you must be where the customer is going to be. Japanese customers will be remarkably frank with researchers and data collectors who are savvy about how to interact with Japanese customers and ask the right questions in a culturally intelligent way.
Integrated
The brand experience has to be integrated into the customer’s lifestyle in such a way that they can “live the brand” because it feels normal and enjoyable. An integrated brand will feel natural to a customer, something that is comfortable for the emotions and inspirations that it renders into the customer’s lifestyle. Because the customer data should be integrated into the brand ecosystem, the integration can and should be entirely seamless. Japanese customers are extremely private about their lives and as a rule make a clear distinction between home, work, and social activity. If you know the boundaries, you can design an experience that integrates each of these in such a way that the consumer feels comfortable.
Intuitive
Japanese customers spend a significant amount of time thinking and researching about what brand of shoes they want, which fashion style they want to follow, which vacuum cleaner to buy. They do their research online, in person, and rely particularly strongly on peer reviews and celebrity influencers. They think long and hard about these things and research where to find them, so a brand or company needs to do the same. It is imperative to get on the Japanese customers’ radar at the “discovery” stage. Then deep-down customers will feel that they know instinctively where to turn, and they will feel comfortable that they will find what they are looking for by going to your brand. Moreover, customers expect brands to know what they will be looking for next season, or as a complementary item. Japanese customers expect brands to learn about them, to predict what they are going to want or need next.
Innovative
It goes without saying that innovation is essential for any brand. But the best reason for innovation is on display in the Japanese consumer market. Japanese customers need to be continually offered new experiences. Your brand or company product needs to be the first place customers go to look for new things, new ideas, new experiences. As your brand uses all the data you collect from all the potential touchpoints, AI can help to predict what direction a brand should go to keep your customers coming back to discover. Discovery is one of the most powerful drivers of interaction with a brand, and innovation is what will keep customers coming back for more. Japanese customers expect products or displays or communications to vary by location, environment, and season. It is essential for success in the Japanese market to always seem fresh yet familiar to Japanese customers. That is why incremental change, or “kaizen” is so popular and why radical change is rarely embraced by the Japanese.
Integrity
We are seeing in customers, largely Gen Z driven, the rise of an absolute need for authenticity and doing the right thing. This is particularly true of Japanese consumer who demand authenticity and honesty. Japanese people and customers are by nature very honest, and they expect 100% honesty from any brand, company, or product on the market, regardless of if they are a purchaser or user. Brands need to communicate and act with integrity whether in direct, indirect, or not at all contact with Japanese customers. What happens halfway around the world is right in front of customers on their smartphones, of course, yet Japanese customers are almost fanatically focused on what is happening in Japan. A brand or company faux pas will reverberate instantaneously in Japan. With the highest number of Twitter users typing in Japanese and given the ferocity of a consumer who has been ill-treated, nothing is more important than to be vigilant about the communication around your company or brand. And Japanese customers expect brands to do what is good. Even if customers do not tell you in their words or actions that they expect you to do what’s right in terms of ESG, they do. Japanese customers rather expect brands to act responsibly in ways that the customer identifies with, and they may not tell you what that is. Sustainability is becoming the new luxury, and authenticity is everything.
Instead of thinking that Japanese customers are demanding of you, rather think that you need to earn the trust of your Japanese customers. This takes time, patience, and a solid understand of the five “I”s that Japanese customers want. More than any other market, once you have earned the trust of your Japanese customer, they are famously loyal and will not drop you at the sign of the newest trend. But you must do your homework and maintain a high-level IQ, emotional intelligence (EQ), and cultural intelligence (CQ) within the context of Japan and its culture.