Episode #233: Hartmut Pannen, CEO KK Irisu

Previously Hartmut was a Partner at Bizits Partners, Senior Consultant at z-anshin, Managing Director at TRUMPF Japan, Managing Director at TRUMPF United Kingdom, Managing Director TRUMPF Japan. He graduated with a Master of Science from Penn State University, and a degree in Industrial Engineering from Technische Univeritat Clausthal.

Summary

Hartmut has built his leadership philosophy on trust, adaptability, and a deep understanding of Japan’s business culture. His experience leading organizations in Japan has taught him that success is not just about implementing strategies but about fostering strong relationships, both within the company and with customers.
One of the key pillars of his leadership is trust. In Japan, where business relies heavily on long-term relationships, Harmut realized early on that credibility is everything. When he first started selling technical equipment, he encountered a cultural expectation that past problems must be resolved before moving forward. Instead of simply pushing new sales, he took the time to address unresolved issues with previous products, ensuring that customer concerns were met before introducing something new. This commitment to problem-solving laid the foundation for a strong reputation, both among clients and within his company.

Leading a Japanese team came with its own challenges. Employees would often agree to proposals with a simple "yes," but that didn’t always translate to action. He learned to look beyond surface-level agreements, following up consistently and creating structured opportunities for discussion. Harmut also recognized the Japanese preference for Kaizen—continuous, small improvements—rather than large-scale changes. He worked within this mindset, ensuring that his team focused on steady progress while also integrating global innovations in a way that felt natural rather than forced.

Managing performance was another challenge. Unlike in many Western companies, where underperformance can lead to quick dismissals, Japanese business culture requires a more careful approach. Harmut developed a system of retraining and repositioning employees when possible, giving them a chance to improve before considering other options. He ensured that performance issues were addressed transparently but fairly, creating an environment where accountability was expected but never handled harshly.

A significant part of his success came from his deep engagement with customers. He viewed complaints not as setbacks but as invaluable insights. By actively listening to dissatisfied customers, he was able to refine products and services, which, in turn, strengthened relationships and improved business outcomes.
Throughout his career, Harmut sought out mentors to help navigate the complexities of leadership in Japan. He believes that leading successfully in a foreign culture is not about forcing one's own methods but about adapting—like reshaping a key to fit a specific lock. His leadership journey demonstrates that with patience, cultural awareness, and a commitment to trust, long-term success is possible.