Episode #10: Seiichiro Asakawa, CEO, Tokyo Chemical Industries

As a leader, I learned to not compete on things I did not have expertise in. I had a financial background, not a technical background, so there was no use trying to convince technically strong employees on that front – I had to use financial data as facts in order to convince my employees to accept that things needed to change in order to grow on the global scale that I wanted.

While I accept there are differences in practices between cultures, I think the basics of people are the same. People are motivated to learn, to grow, to advance. Young people particularly, regardless of culture, are willing to challenge themselves and are not afraid to try and even fail.

We invested heavily in the company computer systems so that all staff can, at the touch of a button, contact any other member of our overseas team. So, apart from being conscious of time differences, there is no excuse for a lack of communication. We communicate, even at the Japanese headquarters, mainly in English and what I encourage the most is everyone just having a go, it can be horrible English with just a bunch of words together but there will always be someone in the meeting who can translate so it is vital that people gets a chance and just tries. Bit by bit, they will realise no one`s English in the company is perfect and that just trying to communicate is the key.

We never fire people for making a mistake, even if it is a big one because they tried, so they are not penalized and in fact we set up challenge systems within the company to recognize employees globally who met the challenge, made the contribution and tried.

We also bring managers to Japan and take Japanese managers to our other offices in India and China and Europe etc, so as many people as possible, can see first-hand how our business operates in different cultures. It is expensive to do this, but I see it as an investment in my people, in team building and in my company.

I think while money is important to people, they have bills to pay after all, but recognition in so far as being trusted to take on certain roles and responsibilities is a bigger motivating factor in my company.

When I took over the company, and instigated the global expansion, I had to be very precise and transparent about my messages. I would send the messages in English and Japanese to the employees about where we were and where we wanted to go. I would outline the broad plan and then ask different groups into meetings to plan, plan, plan – down to the detailed plans. This was how I built ownership from the employees into the global plan, and changed the company culture from a One-King culture, top-down strong leadership style that my father used, to a style that was more suited to me and what I had learnt in the US

I think a problem in Japan is we ask people to choose a specialization at far too early an age. For example, once you go down a science path, you do not learn management or business skills, so we end up with highly skilled workers but only in their particular field, and that puts us at a competitive disadvantage because in many other Western countries, even if you major in science, you still get a liberal arts education, which basically teaches you the leadership and communication skills you need anyway.

In Japan, a well-mannered conversation is based on listening, to fully understand and make an in-depth comment. Feedback is only considered appropriate at work, feedback to people at your own level is considered aggressive. You need to be very careful giving feedback to Japanese people, listen carefully to what they are trying to do and the reasons they are doing that.

Personal relationships are key in Japan. Japanese have hospitality in their DNA, so show some interest in the culture and people will be more likely to engage with you. It helps build trust.

Seiichiro Asakawa, CEO, Tokyo Chemical Industries.