Episode #75: Tom Whitson, Former Partner, KPMG Japan

Originally from the US, Mr. Whitson’s background in Accounting, Japanese and Korean language opened him up to many opportunities in international business as a new graduate. After entering KPMG in 1975, Mr. Whitson was first assigned to work in Los Angeles to audit many Japanese companies that were entering the US market and American companies going to Japan. His clients included major companies such as Honda and Mazda Motor. Mr. Whitson then left for Korea and what was originally intended to be a short posting turned into over three years. Afterwards, Mr. Whitson went back to the US for a year in various types of training before becoming partner at KPMG Japan in Tokyo.

Mr. Whitson’s first few years as a junior staff in Korea allowed him to gain important accounting and client management experience. He had a supportive boss who enabled him to learn from his mistakes and learn how to handle difficult foreigner clients.

During his first years of leadership in Japan, Mr. Whitson quickly noticed how compared to other parts of the world, Japan values team work as opposed to being independent minded. Mr. Whitson has also noticed that certain Japanese people who have international experience act differently depending on the situation – in a more international environment, they will act outgoing and assertive whereas when surrounded by more Japanese people, they will become more consensus oriented and soft.

Hence, Mr. Whitson is careful to listen to those who are less vocal or are not fluent in English but are adding value to the organization and giving them recognition. He explains that active listening shows respect to the other party, which leads to trust. Not jumping to conclusions about people or things is important in Japan – which is a trap many foreign leaders fall into when first arriving. Moreover, giving challenging assignments with clear expectations and support is another way Mr. Whitson shows trust in his team. By delegating and providing more accountability to his staff, Mr. Whitson believes they will become more engaged in their work and the organization as a whole. When handling mistakes, Mr. Whitson is careful not to blame the person but instead focus on fixing the problem.

On innovation, Mr. Whitson says diversity is a key element in working with creativity. Upon setting up a transaction practice at KPMG, 60% of the hires Mr. Whitson made were women, which was a rare situation at the time when the organization was made up of 90% men. Mr. Whitson noticed that his female employees excelled in intervieweing their clients and understanding their needs and challenges to help them make informed decisions. Mr. Whitson has carried through this lesson in diversity and creativity into his other projects including the Japan Market Entry Committee.

To new foreign leaders coming to Japan, Mr. Whitson advises to have high cultural sensitivity. He adds, leaders should learn how Japanese society functions from various sources. Secondly, Mr. Whiston recommends learning some Japanese as it provides valuable insight into the way Japanese think and present ideas. Thirdly, Mr. Whitson advises to take time to get to know the Japanese team as in many cases, decisions are made through a longer process than compared to the west.

To Mr. Whitson leadership is about setting goals for the organization and communicating with people to help them contribute in the best way possible to achieve those goals.