Episode #9: Paul Hardisity Ex-CEO, Adidas Japan

Once you walk the talk over a given period of time as a leader, you gain trust, and then people will follow you, instead of just doing what you say. Then you start getting buy-in and ideas and you can work cross-functionally.

On engagement surveys, if you are giving a very low score, then you should not be coming into the office. If you are not going to be part of the solution, then you should reconsider your career and job. Engagement scores however tend to coincide with big decisions, e.g. head count freezes has a negative impact on scores, but bonus time has a positive impact. It is also not helpful to compare countries against other countries. It is about trends and patterns and feedback. You are always going to get people who score low, but it is when you see big swings that you know there is an issue.

I used to think that my job was to find a local leader to replace me once I moved on, but I have realized we are an international company and rotation is a better solution, so succession plans are not just country-based, they are global.

While it may not be a fantastic analogy, chopping the tree down from the top takes a long time. If you wedge things in the tree all the way up, the tree will fall the way you want it to fall.

The unwillingness to change in Japan is strong. We have long had an innovations/idea box and you can put your name on it or not, but we would offer prizes and that encouraged people to put their names on it. But then we received feedback that the idea then became the responsibility of the person who suggested it, and yet often it was not even about their own division. So we created a business development department that reported directly to the CEO, and they can then tackle any strategic ideas that need to be implemented cross-functionally. It was a great tool to get ideas out of heads and onto paper and then to receive quick feedback on that idea by a specialist department who was responsible for it.

Employee meetings are held quarterly and they are mandatory to the extent I myself would walk the floor to see who was not in attendance. There would be various presentations but it was designed as a forum for communicating what needed to be communicated.

I used to have a pizza lunch every 3 weeks with the newcomers where they would have to answer 5 questions and I would have to answer the same 5 questions honestly. It helped build trust and exposure. My door was always open. I would meet with anyone and everyone.

Sharing personal stuff really helps brighten engagement. I do it because it is just me and how I am but especially in Japan, I realized it was seen as a really big deal. My view is you do not need to be a rock or some kind of impenetrable individual. You are a human, you have a family, you have a dog, you have issues, so its okay to relate to people and have them relate to you. You should not stop a weekend activity you have been enjoying for decades just because you are the CEO or whatever.

I think it is important to be careful what you wish for because changing things that are inherent to a culture, even if they sometimes cause frustration, would fundamentally change the country. Manage the business with the environment you have. Use it to your advantage.

Do not be brainwashed by some of the things you have been told about Japan either by foreigners who are new to the country or who have been there a long time. There are as many challenges in Japan as they are in any other countries. Focus on the good and where there are growth opportunities. Yes, it can be a flat market in general but pick your battles and look for areas you can innovate in. You need to think and you need to ask for help. Consultants can often give you insights into the market from a bigger picture and help you develop those plans, as well as point out where you can hit to grow your business, grow your career and grow your family. So be open-minded, draw your own conclusions and enjoy the ride.

Paul Hardisity, Ex-CEO, Adidas Japan.