Episode Transcript
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Chase Stratton (00:00):
Welcome back to
the Deep Dive.
Today, we're tackling a reallyfascinating topic, leadership in
Japan, specifically the role ofcountry manager.
It's this incredibly alluringbut notoriously challenging
market.
And this position, well, oursources call it the most sought
out position, even the pinnacleof Japanese country management.
So our mission today is toreally unpack what it takes, not
(00:23):
just to land the job, but toactually succeed there.
We're looking at everythingfrom, you know, salary
expectations to the kind ofcultural deep smarts you need.
Tessa Sourceley (00:31):
Yeah.
And to do that, we've gatheredquite a bit of material.
We've got detailed salaryguides.
Think Morgan McKinley, RobertHalf insights from executive
search firms, companyannouncements about recent hires
and some really interestingreal world case studies.
It should give you a prettycomprehensive picture.
Chase Stratton (00:47):
And here's
something that really jumped out
at me.
Getting the job offer.
That's actually just thebeginning.
The real test, apparently,often comes down to those first
120 days.
That's the make or breakperiod.
Let's dig in.
OK, so the pinnacle.
That's a strong statement.
What specifically makes thiscountry manager role in Japan
so, well, so crucial anddifferent compared to leading,
(01:09):
say, a German or U.S.
operation?
Is it just the culture or isthere more to it?
Tessa Sourceley (01:14):
It's definitely
more than just surface level
culture.
These leaders are the absolutevital link between global HQ and
the Japanese market.
They're not just managers.
Our sources call them culturalinterpreters, market
strategists, relationshipmanagers and advocates.
They have to navigate thisreally intricate web, cultural,
social business norms just toget things done effectively and
build those essential long termrelationships.
(01:35):
It's deep integration work.
Chase Stratton (01:37):
Right.
And for that level of skill andresponsibility, the pay seems
to reflect it.
Morgan McKinley's 2025 dataputs the average annual salary
for a president or countrymanager in a large Topio firm
somewhere between, wow, $25million and $25 million.
That's significant.
It is substantial, yeah.
But then Robert Half Japan'snumbers for a general country
manager role.
show this huge spread, like the25th percentile is 35 million,
(02:01):
the median is 40 million, butthe 75th is 50 million.
And you mentioned some sourceshint at ceilings near 100
million for deep experience.
What causes that massive range?
Is it just years in the seat orspecific skills?
Tessa Sourceley (02:13):
It's definitely
more nuanced than just
seniority.
The sources point to thingslike highly specialized niche
skills, the sheer complexity ofthe specific role, maybe
managing multiple businesslines, and critically, a proven
track record of successfullyblending global goals with local
execution.
So someone new might start atthe lower end, sure.
(02:34):
But a leader who hasdemonstrably navigated Japan's
complexities, built keyrelationships, maybe handled
tricky regulatory stuff, theycommand the top figures.
And this is all happening in acontext where, you know, Japan's
overall wage growth has beenkind of sluggish.
Despite government pushes,inflation and the exchange rate
have actually squeezed consumerslately.
(02:55):
But interestingly, there's acountertrend for top talent.
About 55 percent of employerssaid they do plan to bump up
salary offers in 2024 for thosereally hard to fill roles.
So for the right countrymanager, someone who can bridge
those cultural gaps, it's stilla very competitive market.
Chase Stratton (03:09):
OK, so you've
navigated the interviews.
You've got the offer.
Congratulations.
But then comes the realitycheck.
That first 120 days, you saidit's make or break.
Why is that initial period soincredibly critical in Japan
specifically?
Tessa Sourceley (03:20):
Well, the
stakes are just incredibly high.
Look, international assignmentfailure rates, even in developed
countries, can hit 25 5% to40%.
That's huge.
And some data even suggestsWestern expats in Japan can be
significantly less productivethan back home.
And it's often not abouttechnical skills.
The main reasons for failure,things like cultural adaptation
(03:42):
issues, emotional maturity,sometimes even family struggles,
it's the softer stuff thatderails people.
Chase Stratton (03:48):
And the cost
when it goes wrong.
Tessa Sourceley (03:50):
Yeah.
Chase Stratton (03:50):
It's not just
the recruitment fee, is it?
I read it could be anywherefrom two to 20 times their
annual salary.
Tessa Sourceley (03:55):
Exactly.
You have the direct costrecruitment, relocation, maybe
severance, but then the indirecthits.
Lost productivity, team moraleplummets, your brand reputation
takes a knock.
And in Japan's tight labormarket, finding a replacement
causes huge operational delays.
It can set a company backsignificantly.
Chase Stratton (04:10):
Wow.
So how do you avoid becomingone of those statistics?
Is there a roadmap for thosefirst critical months?
Tessa Sourceley (04:16):
There is
actually.
Our sources consistently pointto a kind of 30, 60, 90 day
framework.
It's like a structured sprintto integrate effectively.
So days one to 30 It's allabout learn and listen.
Deep immersion.
The absolute focus should be onlearning and observing.
Forget about implementing bigchanges.
Key things to do.
(04:37):
Map out the stakeholders whoreally holds influence formally
and informally.
Gather informationrelentlessly.
Ask questions.
Lots of questions.
But the golden rule.
Don't make any major decisionsyet.
Build understanding.
Build trust first.
Chase Stratton (04:52):
So showing up on
day two with a grand vision and
expecting everyone to jump onboard.
That's probably not the way togo.
Sounds like you just get politesilence.
Tessa Sourceley (04:59):
You'd get
exactly that.
Polite silence, maybe somenoncommittal nods.
It's the classic Japanese wayof saying no without saying no,
a trap many foreigners fallinto.
Chase Stratton (05:07):
Okay, so after
the listening phase.
Tessa Sourceley (05:09):
Right.
Then days 31 to 60 shifttowards build and implement.
But carefully.
The goal here is achieving somequick wins to build credibility
and momentum.
And this is where masteringNimawashi becomes absolutely
vital.
You mentioned laying thegroundwork.
That's it.
It's about those informalone-on-one chats before any
formal meeting or announcement.
You float ideas, get feedback,build consensus behind the
(05:31):
scenes.
It shows respect for theprocess and helps you establish
a leadership style that workswith the local culture, not
against it.
Chase Stratton (05:38):
Nemawashi.
Okay, that sounds crucial.
And the final phase, days 61 to90.
Tessa Sourceley (05:43):
That's the lead
and refine stage.
Now the executive starts actingmore like a leader, improving
things.
This is where you begin settingthe broader strategy, maybe
hiring key people who align withyour vision.
And critically, you need tomake sure the local team's
objectives are clearly synced upwith Global HQ's goals.
It's this constant balancingact, being decisive, showing
leadership, but still operatingwithin that consensus-driven
(06:05):
Japanese context.
It's tricky.
Chase Stratton (06:07):
That framework
makes sense.
Now, let's dive deeper intothose specific cultural elements
you mentioned, the landminesand success factors.
What are the big ones a newleader absolutely has to grasp?
Tessa Sourceley (06:19):
Okay, this is
where it gets really
interesting.
Japanese decision-making hasthese core processes you just
have to understand.
First, nimawashi and ringi,which we touched on.
Nimawashi is that crucial,informal, behind-the-scenes
consensus building.
Honestly, that's often wherethe real decision gets made,
before the meeting.
Then there's ringi, which isthe formal process.
It's usually bottom-up, where aproposal document the ring is
(06:43):
shown gets circulated andstamped for approval by a very
departments and managers.
So if you, as a foreign leader,just drop a big new idea in a
formal meeting without any priornimawashi, forget it.
People haven't had the chanceto read the air, kuki wo yomu,
and get comfortable with itcollectively, you'll likely get
polite pushback.
Chase Stratton (06:59):
Reading the air.
That sounds like a skill initself.
Tessa Sourceley (07:02):
It absolutely
is.
Then you have senpai-kohaidynamics.
This is fundamental.
It's the senior senpai andjunior kohai relationship.
It dictates a lot about respectand influence in the workplace,
often based on tenure, not justjob title.
A foreign manager needs tonavigate this very carefully.
Show respect to senior members,even if they aren't direct
(07:22):
reports.
Understand that just becauseyou're the boss doesn't mean you
can ignore these establishedhierarchies.
Empowering your team has to bedone thoughtfully.
Chase Stratton (07:30):
Okay, that makes
sense.
What else?
Tessa Sourceley (07:32):
Well, there's
Han versus Tate May.
This is a big one.
Han is someone's true feelingsor intentions.
Tate May is the public face,the opinion or behavior they
display outwardly, often forharmony.
Understanding this distinctionis vital for communication.
What someone says in a meeting,Tate May, might not be what
they truly think, Han.
Again, it comes back to readingthe air, picking up subtle
(07:52):
cues, maybe having thoseinformal chats.
Chase Stratton (07:55):
So you can't
always take things at face
value?
Tessa Sourceley (07:57):
Not always, no.
And finally, somethingpervasive is the need for
patience and arelationship-driven pace.
Business in Japan, as oursources stress, is built on
trust, long-term commitment, andattention to detail.
This means negotiations cantake longer.
Decisions often involve gettingbuy-in from many stakeholders.
You have to blend the urgencysometimes demanded by global H
(08:19):
with the Japanese pace, whichprioritizes building solid
relationships first.
Rushing things rarely works.
Chase Stratton (08:26):
Wow, that's a
lot to navigate.
With all these layers inNamuashi, Senpai Kohai,
Hanatatame, how does anon-Japanese leader
realistically manage?
What's the key practical tool?
Tessa Sourceley (08:36):
Across the
board, the sources highlight one
thing as absolutely critical,having a bilingual deputy or a
dedicated cultural translator.
This person is more than justan interpreter.
They're an invaluable bridge.
They provide context onunspoken rule help decipher
those subtle cues, explain theHan behind the Tutme.
They are absolutely essentialfor helping a foreign leader
avoid cultural missteps andtruly connect, like a girl
(08:58):
pilot, really.
A
Chase Stratton (08:59):
cultural
co-pilot.
I like that.
Okay, these concepts arepowerful.
Let's make them even more realby looking at some actual
leaders navigating this.
You mentioned case studies.
Tessa Sourceley (09:07):
Yes, we have a
few examples of what our sources
call quintessential countrymanagers.
Take Jeremy Cowx, for instance.
He's now with Teltonika Japan,formerly at IMI Japan.
He speaks French, English,Japanese, and Russian, quite the
background, and 23 years oftechnical sales experience
across Asia and Europe, hisphilosophy.
He literally says you need tohave boots on the ground.
(09:28):
He stresses building localJapanese clientele and even
providing cross-culturaltraining back to global teams.
At IMI, he managed to breakinto the tough Japanese
automotive supply chain tier twolevel.
And interestingly, herepositioned it to mirror a more
Japanese manufacturingorganization that built local
confidence.
He also notes the challengethat in In Japan, the customer
(09:50):
is God, meaning foreign firmshave to meet incredibly high
expectations.
Chase Stratton (09:53):
Repositioning
the company to feel more
Japanese, that's deepadaptation.
Who else?
Tessa Sourceley (09:57):
Then there's
Haritoshi Tojo.
He was recently appointed headof Japan for Anthropic, the AI
company.
Tojo-san has serious experiencescaling tech companies.
He was Japan country manager atSnowflake, building it from
scratch locally, and heldleadership roles at Google Cloud
Japan and Microsoft.
His focus now is helpingJapanese companies use
responsible AI for a competitiveadvantage.
(10:19):
Anthropic specifically choseTokyo for its first Asian office
and plans to hire local talentwho deeply understand the market
dynamics.
They know local expertise iskey.
Chase Stratton (10:29):
Makes sense,
especially in a field like AI.
Any others?
Tessa Sourceley (10:32):
One more.
Yuki Katsumura appointedcountry manager for Silvera in
Japan.
This was very strategic,happening just before Japan
ramps up its mandatory emissionstrading scheme, the GXETS, in
2026.
Katsumura-san has a strongbackground in finance and global
firms like Okasan Securities,Bloom and S&P Global.
So he's well positioned to helpJapanese corporations deal with
(10:53):
the complexities of the carboncredit market.
Again, it's about deepexpertise combined with market
understanding.
Chase Stratton (10:59):
These are great
examples.
They really show the range ofbackgrounds, but also that
common thread of deep adaptationand local focus.
Tessa Sourceley (11:07):
Absolutely.
And it's not just the leaders,it's the company strategies too.
Look at Teltonika again.
They're setting up a new Tokyooffice.
Their whole approach is aboutstrategic partnerships locally,
localizing their productofferings and making sure they
meet Japan's high standards,especially in things like
telematics technology.
They're focusing on productlocalization, strong after sales
(11:27):
service, full Japanese languagesupport, everything needed to
effectively serve local needs.
Our sources show high demandthere for precision tech, AI
analytics, EV telematicssolutions.
You can't just parachute in aglobal product.
You have to tailor it and buildtrust.
Chase Stratton (11:42):
Okay, so
wrapping this up, we've really
journeyed into this unique worldof the Japan country manager.
It's clearly demanding,complex, but also it seems
incredibly rewarding if you getit right.
We've seen how vital they areas these cultural bridges and
strategic leaders, the intensityof that initial 120-day sprint,
and just how deep the culturalintelligence needs to run.
Tessa Sourceley (12:03):
Yeah, it really
boils down to understanding and
respecting those uniquedynamics like namawashi, like
senpai kohai, finding thatbalance between what global HQ
wants and what works locally.
It's about earning trust,genuine trust, not just imposing
strategy.
That seems to be the secretsauce.
Chase Stratton (12:20):
Definitely.
And for you listening, whetheryou're eyeing a leadership role
overseas or you work in globalteams or maybe you're just
fascinated by internationalbusiness, there are huge lessons
here from Japan aboutcross-cultural leadership and
really strategic patience.
Tessa Sourceley (12:35):
Which leads to
a final thought, perhaps.
When a company expands into amarket as culturally distinct as
Japan, how should they reallyweigh a leader's past business
wins against their provenability or potential for deep
cultural immersion in edadaptation, where should the
balance lie?
Something to think about as younavigate your own work
environments.