Episode Transcript
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Chase Stratton (00:00):
Welcome to the
Deep Dive.
We sift through your sources toget you informed fast.
Today, we're exploring a reallyunique challenge, foreign
executives leading in Japan.
Tessa Sourceley (00:11):
It's a
fascinating area, definitely.
Chase Stratton (00:12):
Right.
So many multinational companiesplace non-Japanese talent in
key roles there.
But, well, navigating thecorporate scene in Japan...
Tessa Sourceley (00:22):
It's
Chase Stratton (00:23):
just different,
isn't it?
Tessa Sourceley (00:24):
It really is.
Almost unlike anywhere else.
Chase Stratton (00:26):
So in this deep
dive, we're looking at how these
expat leaders actually findsuccess, the surprising hurdles
they face.
We've got personal stories,headhunter insights, lessons
learned.
Tessa Sourceley (00:37):
Both the
successes and, well, the
stumbles too.
It's important to see bothsides.
Chase Stratton (00:41):
Exactly.
Our mission today, to unpackwhat it really takes to be a
breakthrough leader there.
And, you know, howunderstanding those deep
cultural nuances.
That's often the real key.
Tessa Sourceley (00:50):
The secret
sauce, perhaps.
Chase Stratton (00:51):
Yeah.
Okay.
So let's start unpacking.
Many foreign leaders, theyarrive, global strategies in
hand, right?
Expecting quick wins.
Tessa Sourceley (00:58):
That's the
common pattern.
Chase Stratton (00:59):
But those
standard playbooks, they often
just fall flat.
Why is that?
Tessa Sourceley (01:04):
Well, it's
striking, isn't it?
Japan operates on fundamentallydifferent cultural axes,
concepts like wah harmony andnemawashi.
Chase Stratton (01:13):
That's the
pre-consensus building.
Tessa Sourceley (01:14):
Exactly.
They are absolutely paramount.
And then there's reading theair.
Understanding what's not beingsaid.
Chase Stratton (01:21):
An essential
skill, you mean.
Tessa Sourceley (01:22):
Oh, completely.
If you don't grasp theseunwritten rules, even really
competent executives can getcompletely derailed.
Chase Stratton (01:30):
We have a story
here that just hits this nail on
the head.
A Western COO manufacturing JV.
Tessa Sourceley (01:36):
Ah, yes, I
think I know this one.
Chase Stratton (01:38):
He pushes
through a major reorganization.
Makes sense on paper, you know.
Tessa Sourceley (01:42):
Logically
sound, probably.
Chase Stratton (01:43):
But he didn't do
the pre-consulting with the
line managers.
The Nimawashi.
And what happened?
Tessa Sourceley (01:49):
Let me guess.
Quiet resistance.
Sabotage.
Chase Stratton (01:52):
Quiet sabotage
is exactly it.
He said later, and this is aquote, the official meeting was
just theater.
I learned the real meeting hadhappened a week before and I
wasn't invited.
Tessa Sourceley (02:01):
Ouch.
That's a harsh lesson.
Chase Stratton (02:04):
It really is.
It shows that the real decisionmaking often happens
informally, behind the scenes,way before any formal meeting.
Tessa Sourceley (02:10):
That public
meeting is often just a
ceremony, a rubber stamp.
It's already been decided.
Chase Stratton (02:15):
And this applies
externally too, right?
With clients.
Tessa Sourceley (02:18):
Absolutely.
That polite, we'll think aboutit, or that may be possible.
Chase Stratton (02:23):
Sounds positive
to a Western ear.
Tessa Sourceley (02:25):
Right.
But it very often means no.
We heard about a foreign salesexec who learned that the hard
way, thought the deal waspractically done.
Chase Stratton (02:32):
And it wasn't.
Tessa Sourceley (02:33):
Nope.
went to a competitor whounderstood the cues.
Chase Stratton (02:36):
It really brings
up that idea of Tate May versus
Han, doesn't it?
The public face versus the realintention.
Tessa Sourceley (02:41):
Precisely.
Tate May is what said, thefacade.
Han is what's truly felt.
They can be worlds apart.
Chase Stratton (02:46):
Like the CEO
with the feedback survey using a
one to five scale.
Tessa Sourceley (02:50):
Oh, that's a
classic example.
He saw all these three scoresand thought, mediocre
performance.
But the local HR head had toexplain, look, in our culture,
giving a three publicly, that'sactually high praise.
Anything higher would beuncomfortable, maybe even
boastful.
Chase Stratton (03:07):
Wow.
So a three is high praise.
Yeah.
How do you actually interpretfeedback or anything really?
Tessa Sourceley (03:13):
That's the
million dollar question, isn't
it?
It often means you need to relyless on the explicit data, the
numbers, the direct words.
And more on?
More on context, relationships,subtle signals.
And, crucially, having atrusted local advisor who can
read the air and translate theHan for you, the absence of
(03:34):
direct criticism might actuallybe the highest praise.
Chase Stratton (03:37):
So it's not just
about the words, which makes
you wonder...
Does speaking Japanese actuallyguarantee success?
Tessa Sourceley (03:44):
You'd think so,
wouldn't you?
But not necessarily.
Chase Stratton (03:46):
Really?
Tessa Sourceley (03:46):
Yeah.
While language skills aredefinitely helpful, don't get me
wrong, it's the culturalfluency, the EQ, that's far more
critical.
Chase Stratton (03:53):
So knowing the
grammar isn't enough if you
don't know the game.
Tessa Sourceley (03:55):
Exactly.
Many expats overestimate howmuch weight English fluency
carries in the Japaneseexecutive world.
It's about navigating thesubtle cues, the expectations,
how you behave.
Chase Stratton (04:06):
We've got some
great anecdotes on this.
The American GM in Tokyo,right, trying to hire using
LinkedIn.
Tessa Sourceley (04:12):
Oh, the
LinkedIn ghost town.
Chase Stratton (04:13):
Less than 1%
response rate.
Because that kind of directpublic outreach, it just doesn't
fit.
Tessa Sourceley (04:19):
Nope.
Career changes there are oftenvery discreet.
It's all about quiet referrals,offline networks.
LinkedIn feels too exposed,maybe.
Chase Stratton (04:29):
And what about
the senior American leader
calling himself Tom in acompany-wide email, trying to be
approachable?
Tessa Sourceley (04:36):
Ah, yes.
And the staff are asking, who?
Who is Tom Sand?
They only knew his formal namefrom the documents.
Chase Stratton (04:43):
So trying to
build rapport actually created
confusion.
Tessa Sourceley (04:47):
It can backfire
if the relationship isn't there
yet or if the cultural contextis wrong.
These aren't huge strategicblunders, but they add up.
They create friction.
Think about the business cardritual, the Meishi Kokon.
A foreign exec just pockets thecard instantly.
Awkward.
Very.
It signals disrespect, even ifunintended.
Or appearance the exec with thegray suit and brown shoes for a
(05:08):
final interview.
What is wrong with that?
The recruiter later told himgently that it wasn't quite the
image of an executive in Japan.
Details matter.
Chase Stratton (05:16):
And that story
about praising the junior
employee for speaking up in atown hall.
Tessa Sourceley (05:20):
Right.
The European exec thought hewas encouraging open dialogue.
Chase Stratton (05:24):
But the employee
Tessa Sourceley (05:24):
quietly asked
for a transfer the next day.
Because in many traditionalJapanese firms, challenging
leadership publicly, even ifinvited, can carry a subtle
social penalty.
You might be seen as notunderstanding your place or
disrupting the law.
Chase Stratton (05:38):
It really sounds
like Japan operates on its own
unique rhythm.
So what does this mean forgetting things done?
for the pace of change.
Tessa Sourceley (05:46):
Well, it leads
to this fascinating paradox that
many foreign leaders observe.
Slow is fast.
Chase Stratton (05:52):
Slow is fast.
How does that work?
Tessa Sourceley (05:54):
Think about the
expat HR director.
Months, literally months, spentworking on a voluntary
retirement scheme, approvalsinching along, microscopic
steps.
Chase Stratton (06:03):
Painfully slow,
sounds like.
Tessa Sourceley (06:05):
Extremely.
But then, the moment the finalgreen light came, bam, the
entire rollout, executed within24 hours.
Chase Stratton (06:12):
Wow, like
watching a glacier suddenly turn
into a rocket ship.
Tessa Sourceley (06:15):
Exactly.
That's a great way to put it.
It shows that once that deepconsensus that Nimawashi is
truly building build,implementation can be incredibly
swift and decisive.
Chase Stratton (06:25):
So the slowness
isn't inefficiency.
It's thoroughness.
It's building certainty.
Tessa Sourceley (06:30):
Precisely.
It's about being absolutelysure everyone is aligned before
hitting go.
This meticulous planningextends everywhere.
Remember the expat GM invitedon a team hike?
Oh yeah, the itinerary.
Four pages detailing everythingdown to restroom locations and
types of foliage.
Chase Stratton (06:48):
Most Westerners
would see that as
micromanagement, surely.
Tessa Sourceley (06:51):
Probably.
But here...
It's seen as professionalism,thoroughness.
Planning reduces risk, andsurprise equals risk.
Chase Stratton (07:00):
It's a different
definition of good management.
Tessa Sourceley (07:01):
Completely.
And it explains why evenwell-intentioned Western
policies, like mandatoryvacations to come back Hiroshi,
overwork.
Chase Stratton (07:09):
They don't
always stick.
Tessa Sourceley (07:10):
Right.
Employees might take the timeoff on paper, but still be
working secretly.
Those deep cultural normsaround work ethic, duty,
modesty, they run very deep.
Chase Stratton (07:20):
OK.
So given all thesecomplexities, these cultural
currents, What kind of foreignexecutive actually does succeed?
Who thrives?
Tessa Sourceley (07:27):
Well, it's
definitely not the global
bulldozer type.
Chase Stratton (07:29):
The ones who try
to just impose their way.
Tessa Sourceley (07:31):
Exactly.
Those usually don't last longor make much real impact.
The successful ones.
They tend to be humble,observant, navigators, not
commanders.
Chase Stratton (07:42):
Navigators, I
like that.
Tessa Sourceley (07:44):
They understand
success isn't about sheer force
of will or speed.
It's about embracing thenuance, having patience, high
emotional intelligence.
Chase Stratton (07:54):
Focusing on
harmony.
like you said earlier, evenover raw speed.
Tessa Sourceley (07:58):
That's often
the trade-off, yes.
Preserving what allows thingsto move forward smoothly, even
if it feels slower initially.
Chase Stratton (08:04):
We heard about
one leader who, instead of just
hammering KPIs, focused ontaking the team out for karaoke.
Tessa Sourceley (08:10):
Yes, because
they understood that in Japan,
relationship building isn't justa nice-to-have, it's
fundamental.
It's the engine.
That's adaptive leadership inthis context.
Chase Stratton (08:18):
I'm thinking
back to the performance reviews.
The German manager giving athree problem, which led to
humiliation.
Tessa Sourceley (08:24):
Right.
A successful leader here learnsto adapt.
They wouldn't use a purelyWestern framework without
understanding its localinterpretation.
Chase Stratton (08:31):
They'd find ways
to give feedback that respects
face-saving.
Tessa Sourceley (08:34):
Absolutely.
Direct, unvarnished criticism,even if constructive in intent,
can be perceived as deeplyoffensive.
Success means learning thelocal language of evaluation,
which is often indirect.
Chase Stratton (08:47):
This landscape
sounds incredibly intricate,
so...
If it's that complex, whoactually helps these foreign
leaders find their footing?
Are they just thrown in thedeep end?
Tessa Sourceley (08:58):
Ah, that's
where another key player comes
in, often working behind thescenes.
The executive search firms inJapan.
Chase Stratton (09:04):
Headhunters.
Tessa Sourceley (09:05):
Well, yes, but
their role here goes far beyond
just matching resumes.
They often act as crucialcultural intermediaries, almost
like Cultural Sherpas.
Chase Stratton (09:15):
Cultural
Sherpas.
Okay, tell me more.
What does that involve?
Tessa Sourceley (09:17):
It's really
multifaceted.
First, they're translators.
And I don't just mean language.
Chase Stratton (09:21):
You mean
translating the unspoken stuff.
Tessa Sourceley (09:23):
Exactly.
Unspoken norms, expectations,whisk factors.
They explain concepts like wahand nimawashi and the need for
low ego leadership to theforeign candidates.
They're bridging worldviews.
Chase Stratton (09:34):
Okay, that makes
sense.
What else?
Tessa Sourceley (09:35):
They are vital
trust brokers.
Remember how relationshipsoften Trump resumes?
Well, in this high contextculture, the recruiter often
acts as the trusted third party.
A Japanese company mighthesitate to hire a foreigner
directly, but if a respectedrecruiter says, I've spent time
with this person, they get howthings work here.
Chase Stratton (09:54):
That carries
real weight, more than
assessment sometimes.
Tessa Sourceley (09:57):
Often, yes.
It's a vouching system based onestablished trust.
Then they're narrativearchitects.
Chase Stratton (10:05):
Meaning?
Tessa Sourceley (10:05):
They help
reshape a foreign executive's
global track record so itresonates locally.
Let M&A and ASIN might not meanmuch.
Chase Stratton (10:14):
So they reframe
it.
Tessa Sourceley (10:15):
Yeah, maybe as
experienced in stakeholder
alignment across traditionalconsensus-driven cultures,
making it relevant.
Chase Stratton (10:21):
Clever.
And does their job end once theperson is hired?
Tessa Sourceley (10:24):
Often not.
They frequently become shadowonboarders, coaching both the
company and the candidate forthe first six, maybe 12 months.
Chase Stratton (10:32):
Really?
What kind of coaching?
Tessa Sourceley (10:34):
Things like,
okay, don't jump the gun in that
meeting, or here's probably whyyour team isn't responding
instantly on Slack, or advisingthe company on how to best
integrate the new leader.
They become temporaryintegration advisors.
Chase Stratton (10:46):
Wow, that's
intensive.
Tessa Sourceley (10:48):
It has to be
sometimes.
And they're also discretionmanagers.
Many searches for foreignexecs, especially replacing a
local leader are highlyconfidential, not advertised.
Chase Stratton (10:59):
So you need
recruiters with deep networks.
Tessa Sourceley (11:01):
Exactly.
private, trusted networks tofind qualified people quietly.
And finally, they're oftenbridge builders in boardrooms.
Chase Stratton (11:12):
So
Tessa Sourceley (11:12):
they're often
the ones first making the case
to Japanese boards for hiringforeign executives, evangelizing
the benefits of internationalleadership, arguing why that
global CMO could future proofthe business.
They lay the groundwork.
Chase Stratton (11:25):
So these search
firms are doing way more than
just filling a role.
They're facilitating majorcultural and strategic shifts.
Tessa Sourceley (11:32):
Absolutely.
They are unsung heroes in manysuccessful integrations.
Chase Stratton (11:35):
This has been
really illuminating.
It seems success for foreignexecs in Japan isn't about being
the loudest or the fastest.
Tessa Sourceley (11:41):
Definitely not.
It's about being the mostpatient, the most observant, the
most culturally intelligent.
Chase Stratton (11:45):
The key takeaway
seems to be that success is
absolutely possible.
Tessa Sourceley (11:49):
It is.
But it demands that deepembrace of nuance, patience,
emotional intelligence.
And recognizing the vitalsupport role these cultural
sherpas the search firms play.
Chase Stratton (12:01):
So for you
listening, what does this all
mean?
Maybe the next time you faceany cross-cultural situation at
work or elsewhere.
Tessa Sourceley (12:07):
Ask yourself,
am I just hearing the words or
am I reading the air?
Is there a Nimawashi happeningsomewhere I'm not seeing?
Chase Stratton (12:14):
How can you
become more of a cultural
navigator, less of a bulldozer?
Something to think about.
Tessa Sourceley (12:20):
Definitely food
for thought.
Chase Stratton (12:21):
Indeed.
What stands out to you aboutnavigating these unique cultural
waters?
We'll leave you with thatthought until our next deep
dive.