Episode #72: Shinzo Yotsumoto, Senior Counselor, Kiduki Architect & ex Managing Director, Schaeffler Japan

Shinzo Yotsumoto shared great insight from his extensive leadership career in the manufacturing industry in various multinational companies including Japan, the US, France and Germany. After graduating from Waseda University, Mr. Yotsumoto entered Kobe Steel where his manager inspired him to work overseas. He worked in the German operation of Kobe Steel from 1985 to 1989 which he recalls as a life changing experience and calls Germany his second home. Mr. Yotsumoto was then head hunted to become the Key Account Executive for Michelin Japan working with Toyota for 12 years. Mr. Yotsumoto then moved on to TRW Automotive Japan as a Representative Director, and then to Schaeffler Japan as the Managing Director. After retiring from a full-time permanent position, Mr. Yotsumoto worked as an Advisor to Roland Berger and then most recently as Senior Counselor to Kiduki Architect.

Having managed several multinational companies, Mr. Yotsumoto found that each country and company has a very different culture and working style. Working in Germany where employees were more vocal in their opinions, Mr. Yotsumoto found a need to communicate and understand his counterpart on a deeper level. Mr. Yotsumoto found this a challenge but an eye-opening experience coming from Japan where people mainly followed instructions. Mr. Yostumoto experienced this firsthand when he moved from Kobe Steel to Michelin. He noticed that the leaders were dedicated to the philosophy of the company to develop tires for a wide range of customers and pushed employees to be equally committed to their vision. Leadership at Michelin encouraged open discussions and welcomed differences in ideas. Mr. Yotsumoto himself, who recalls not being too vocal with his opinions in a Japanese company to become more open and speak up in this new engaging environment.

After Michelin, Mr. Yotusmoto joined TRW Automotive’s Japan operation as their country manager, leading a team of 250 people. Since the company had just gone through M&A, Mr. Yotsumoto’s major task was to bring all the different business units together to create a “one-team atmosphere.” He began by interviewing all 250 of his employees to understand their desires and expectations and how to bring them towards a single direction. This enabled the business units to deliver consistent, united messaging to their Japanese manufacturing partners such as Toyota, which helped create more trust and strengthen the reputation of TRW. Mr. Yotsumoto found that listening to his team and taking quick action based on their input helped him gain trust from his team. For example, Mr. Yotsumoto convinced the American headquarter of TRW to create an R&D Centre in Japan. This action showed his Japanese employees that the US headquarter will listen to the needs of the Japanese customers, which boosted team engagement.

Mr. Yotsumoto was then head hunted to Schaeffler in 2012 as their Japan operation’s Representative Director, leading a team of 300 people. At Schaeffler, Mr. Yotsumoto also held group meetings to listen to his employees and there, he understood that people were ready to embrace change. He encouraged his team from the bottom-up to speak up more to German headquarters on how to grow the business with Japanese customers and provide technical solutions and invest in the local engineering capability.

Working in a multinational corporation, Mr. Yotsumoto says the key to success is to have a sense of curiosity and a desire to further understand stakeholder needs. When faced with a conflict in opinion, Mr. Yotsumoto asks further questions to try to understand why the difference exists. In monthly meetings, Mr. Yotsumoto would pose as a role model by asking simple questions or admitting his mistakes. In doing so, he hopes to create a psychologically safe atmosphere for others to voice their opinions. Mr. Yotsumoto believes that leadership is a “positive influencer” of an organization that creates an atmosphere that encourages people to take on challenges and continue to grow.

To newcomers leading in Japan, Mr. Yostumoto recommends understanding the needs of the Japanese customers to gain trust. In order to build trust, Mr. Yostumoto emphasizes honesty, consistency and accountability. He notes: “we need to sometimes say no to Japanese customers. That's good, but we need to explain why. So that kind of [honest] conversation and explanation can create trust with the customers.” Lastly, Mr. Yotsumoto advises newcomers to “enjoy” Japan including the uncomfortable situations and take it as a learning opportunity.