Episode #2: Harry Hill, Ex-CEO Of Shop Japan

When you lead people, you have to lead them in a way they are going to follow. In Japan, when you teach a class, you line people up in order of seniority and you stand in front of the class. It seems very regimented but everyone is perfectly comfortable because they know their role and where they are supposed to be so that allows for performance to be maximized. In the USA, that kind of a set up would make everyone very uncomfortable and inclined to rebel. To make people feel comfortable and improve performance in the USA, its better to put everyone in a circle so there is no feeling of unnecessary hierarchy. Now, sometimes its useful to put people in uncomfortable situations as a way to challenge them but you need to do it with a specific purpose in mind and that is a call you need as a leader need to make.

A good culture is one where there is a shared sense of purpose and values, and being very upfront about tying that purpose to the actions you/your team are taking. You have to be consistent about that, because especially in Japan, that is the difference between creating a winning culture and a chaotic culture. A shared sense of purpose, professionalism and empowerment create sustainability, where your team can deal with the highs and lows.

In the Shop Japan Business, I looked at our call centre staff as extensions of the customer. They understood the customer because they spent so long speaking to them every day so they took on characteristics of the customer．VOC stands for voice of the customer but really it was at least 50% the voice of the communicator (our call centre staff). It helped us turn morale around because we actively listened and heard. Especially in Japan, if you show that the least empowered voice is going to be listened to, you create a tremendous amount of morale. It also creates innovation – if every new idea has to come from the top, then you are in big trouble.

I always caution Western leaders unfamiliar with Japan is to not fill up empty space. Ask a question and hold yourself back as the silence drags and wait for an opinion. Also try to never have the first word. Let someone else conduct the meeting and then at the end bring things together.
While the easiest way to teach in Japan is to line everyone up, the easiest way to run a meeting is to be overly attentive and give everyone the opportunity to voice their opinion．Getting buy-in from your Japanese team is really hard but when you get that buy-in, you absolutely over-perform.
Japanese employees are looking to make a long-term emotional commitment to where they work so they look for the same level of commitment from their leaders. For foreign leaders on 3 – 5 year postings, I recommend not just speaking with your inner circle. Everyone is meaningful, so have different events where you can show that you are caring about the voice of your employees and avoid being too focused on one group over others, gives you a balanced view of what is going on in the organization.

My acronym for leadership is VICES, which stands for vision, integrity, competency, efficiency and sustained success.
Poor performance and good performance are easy to deal with. It is mediocre performance that is more difficult to deal with.
Trust your people, let them know they are trusted but that it is an open process where people are also accountable.

New leaders need to be patient. The leader that will make the biggest changes is the one that listens and truly gains insight
Identify who are the biggest obstacles in your organization and remove them immediately and publicly. This is the only way that engagement, empathy and trust principles work.