Episode #234: Itai Yanay, COO Plus500

Previously Itai was the Country Manager for Trax Retail, Co-Founder and Acting CEO for ABJ Japan, Managing Director ImpacTech, Director of Business Development APAC Kyodo International Corporation Japan, Sales Manager Moroccanoli Japan.

He has a Masters Degreee in Media and Governance/ Environmental Innovation from Keio Univerity and a BA from Tel Aviv University in East Asian Studies.

Summary

Itai highlights that Japanese employees value humility in leadership. Foreign leaders should initially adopt a learning mindset, showing a willingness to understand local practices and seek guidance from their teams. Japanese professionals take great pride in their work and expect leaders to appreciate details and technical expertise.
A significant challenge for foreign executives is balancing the expectations of headquarters with the slower, consensus-driven decision-making process in Japan. While Western business culture often emphasizes rapid change and assertive leadership, Japan values harmony, long-term relationships, and collective decision-making. Leaders must build trust gradually by engaging in meaningful conversations, demonstrating commitment, and understanding the nuances of Japanese communication, including indirectness and reading between the lines.

Another key aspect of leadership in Japan is handling mistakes and fostering innovation. Employees may be hesitant to take risks due to the fear of failure and hierarchical structures. Yanai suggests that leaders should take responsibility for failures while allowing employees to claim success, which encourages innovation and builds trust.

Recruiting and retaining talent is another hurdle. Japanese employees tend to prefer well-established companies with clear career progression. Foreign companies or startups must create an appealing work environment by offering stability, opportunities for professional growth, and a sense of purpose beyond just financial compensation. Providing employees with "opportunities" rather than just a job can be a compelling way to attract and retain talent.

Additionally, Japan’s highly demanding consumer market pushes companies to refine their operations. Many foreign businesses that establish themselves in Japan find that they must adopt higher standards of quality and service, which can ultimately benefit their global operations.

In summary, leading in Japan requires patience, cultural sensitivity, and a deep understanding of the local work culture. Effective foreign leaders should be humble, trust-building, and willing to embrace Japan's emphasis on precision, harmony, and long-term relationships to succeed.