Episode Transcript
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Chase Stratton (00:00):
Welcome to the
Deep Dive.
We sift through the noise tobring you the insights that
matter.
Today, we're looking at areally interesting paradox.
Japan, a global economic giant,amazing companies, incredible
innovation.
But you look inside theboardrooms and there's a
surprising challenge, a reallack of executive diversity,
(00:20):
still very male dominated.
Yeah.
Which kind of contrasts withits global image, doesn't it?
Tessa Sourceley (00:25):
It really does.
And it's important to framethis correctly from the start.
This isn't just a social nicetyor about fairness, though those
are important.
We're talking about a criticalbusiness issue here.
And there's a growing globalexpectation around it, often
tied to big things likeinvestment.
So our mission today is reallyto explore why.
Why has progress on executivediversity, especially for women,
(00:45):
been Well, let's say slowerthan expected in Japan, even
with government goals in place.
Chase Stratton (00:50):
Exactly.
And to help us understand this,we've gathered insights from
recent reports, some deepanalyses, and also, crucially,
from people working right in thethick of it, executive search
consultants, the ones actuallynavigating this day-to-day.
So a mix of data and real-worldexperience.
Tessa Sourceley (01:07):
And that
government goal you mentioned is
key.
The target is 30% of leadershiproles for women by 2030.
But when you look at thecurrent pace...
Well, it feels painfully slowachieving that target.
It's going to need a massiveshift.
That's really the core tensionwe want to unpack for you today.
Chase Stratton (01:24):
Okay, so let's
start with the current picture.
Ground ourselves in thereality.
Because the numbers on Japan'sexecutive diversity gap, they
really do tell a story.
Women are almost half theworkforce.
That's a solid base.
Tessa Sourceley (01:36):
A very solid
base.
Huge potential.
Chase Stratton (01:38):
But then you
look up at the executive level,
the leadership roles, and it'sjust a fraction.
A sliver, really.
We're talking only around 12%of board seats in Japanese
companies held by women.
Tessa Sourceley (01:48):
Just 12%.
And compare thatinternationally, say, the EU.
Chase Stratton (01:51):
Right, the EU is
closer to 30%.
It's a stark difference.
Tessa Sourceley (01:53):
It really is.
And, you know, for businessleaders, for investors, this
isn't just about how thingslook.
It's not optics.
More and more research showsthat diverse perspectives at the
top lead to better decisions,more robust strategies, more
innovation.
Companies with diverse boardsoften seem more resilient, more
adaptable.
Plus, it has heavily influencesinvestor interest.
Chase Stratton (02:16):
Ah, the investor
angle.
That's becoming huge, isn't it?
Tessa Sourceley (02:18):
Absolutely.
Global institutional investorsespecially are scrutinizing
leadership diversity.
It's becoming a key indicatorfor them.
They see it as a proxy for goodgovernance, for long-term
thinking, for a company'ssustainability.
Chase Stratton (02:32):
So it's not just
internal pressure then.
External forces are reallypushing for change.
Tessa Sourceley (02:36):
Definitely.
You've got governmentinitiatives like the revisions
to the Tokyo Stock Exchange'scorporate governance code.
It's not just a suggestion anymore, they expect companies to
disclose board diversity data.
That transparency createspressure.
Chase Stratton (02:49):
A nudge.
A strong nudge.
Tessa Sourceley (02:51):
A very strong
nudge.
And then, arguably even morepowerful, is the pressure from
foreign investors.
They're increasingly linkingESG environmental, social
governance, and DEI todiversity, equity, inclusion
directly to where they put theirmoney.
Chase Stratton (03:05):
So if a Japanese
company appoints diverse
leaders, it's sending a signal.
Tessa Sourceley (03:10):
Exactly.
It signals future readiness tothese key global stakeholders.
It shows they understand theway the global business world is
evolving.
Chase Stratton (03:18):
So for you
listening, why does this matter?
Well, it highlights thesepowerful global forces shaping
Japan Inc.' 's future.
Corporate success isn't justthe bottom line anymore.
It's also about governance,diversity, how you engage with
the world.
It's a global shift, andJapan's companies are right in
the middle of it.
Okay, so if the pressure ismounting, where does the talent
(03:39):
come from?
Let's move into unlocking thathidden potential, redefining the
executive pipeline.
And I find this M-turn conceptfascinating.
Can you explain that?
This idea of women leaving andthen reentering the workforce.
Tessa Sourceley (03:50):
Yes, the M-turn
career path.
It describes a common patternwhere women might leave the
workforce often in their 30s,maybe for childcare
responsibilities.
But then crucially, they oftenlook to reenter, perhaps in
their 40s or 50s.
So their career path isn'tlinear.
It dips down and comes back up,like the letter M.
Chase Stratton (04:09):
And this group
is...
Often overlooked.
Tessa Sourceley (04:11):
Hugely
overlooked.
Often.
This is a significant pool ofpotential leadership talent.
Think about the skills gainedduring that time, a way managing
complex family logistics, maybecommunity involvement, often
incredible resilience andproblem solving.
Chase Stratton (04:26):
Skills that
don't always show up neatly on a
standard CV.
Tessa Sourceley (04:29):
Exactly.
And that's the challenge.
They face hurdles coming backin, resume gaps, needing help
translating those life skillsinto corporate speak.
And let's be honest, culturalbiases that still tend to favor
that unbroken linear careertrack.
Chase Stratton (04:43):
So recognizing
and tackling those hurdles is
key to tapping into this talent.
Tessa Sourceley (04:47):
Absolutely.
It's a huge potential advantageif companies can figure out how
to bring these women backeffectively.
It
Chase Stratton (04:53):
really makes you
think differently about
experience, doesn't it?
That resilience, thatcapability, just waiting.
It's about spotting thisoverlooked talent and
understanding the systemicbarriers.
It challenges the olddefinition of an executive
career path.
Tessa Sourceley (05:07):
And stepping
back slightly, this conversation
naturally leads to a broaderview of diversity.
It's not just about gender,important as that is.
For Japan to really competeglobally, other dimensions are
vital too.
Like what?
Well, LGBTQ plus inclusion inleadership, for sure, but also
cultural background diversity.
(05:27):
Think about returneeexecutives.
Chase Stratton (05:29):
People who've
studied or worked abroad?
Tessa Sourceley (05:30):
Yes.
They bring back bilingualskills, cross-cultural agility.
They can be bridges betweenJapan and the rest of the world.
Then there are non-Japaneseexecutives bringing totally
different perspectives, marketinsights.
And age diversity, too.
Recruiting late careerexecutives with deep niche
expertise can be incrediblyvaluable.
Wisdom and specializedknowledge.
Chase Stratton (05:52):
So taking this
broader view, it really blows up
that old excuse, the pipelinemyth, right?
The idea that there just aren'tenough qualified, diverse
candidates out there.
Tessa Sourceley (05:59):
Precisely.
The talent isn't missing.
Maybe we're just not looking inthe right places or perhaps not
looking with the rightcriteria.
Chase Stratton (06:08):
Which brings us
back to you, the listener.
Understanding that diversityhas many facets is key.
Expanding that search beyondthe usual profiles isn't just
fair.
It can seriously strengthen anorganization.
Find that competitive edge.
Tessa Sourceley (06:22):
It often lies
in embracing those different
experiences, not just stickingto the familiar.
Chase Stratton (06:27):
Okay, so how
does this actually happen on the
ground?
This brings us to therecruiters, their role in
coaching, sourcing, andimportantly, making sure
placements stick.
Because recruiters often hearsomething quite challenging from
clients, don't
Tessa Sourceley (06:39):
they?
Oh, yes.
The classic request.
We'd love a woman candidate,but, you know, only if she's
perfect.
Chase Stratton (06:44):
Right.
The unicorn candidate.
Tessa Sourceley (06:46):
Yeah.
Chase Stratton (06:46):
Speaks five
languages, Nobel Prize pending.
Tessa Sourceley (06:49):
Exactly.
It sets an almost impossiblestandard.
So good recruiters have to beeducators, really.
They need to reframe thatconversation.
One way is the direct businesscase.
They might say something like,look, the data shows diverse
boards make better decisions.
They attract strongerinvestors.
Even if it can't doesn't tickevery single traditional box,
(07:09):
her unique perspective might addvalue a conventional hire
simply can't.
Chase Stratton (07:14):
That's a strong
counter.
Does it work?
Does it shift the client'sthinking?
Tessa Sourceley (07:17):
Often, yes.
Another angle is the risk lens.
A recruiter might point out, ifwe only look for that classic
profile, we're fishing in thesame tiny pond as everyone else.
The search could stall.
It could fail.
Chase Stratton (07:30):
But if we
broaden the criteria,
Tessa Sourceley (07:32):
we dramatically
increase the chances of finding
a great candidate faster,reducing your risk.
It frames diversity aspragmatic, not just idealistic.
Chase Stratton (07:40):
Makes sense.
Efficiency and effectiveness.
Tessa Sourceley (07:42):
And then
there's reinforcing that global
pressure point we talked about,linking it back to ESG and DEI.
They might say, your investors,your customers, they're
watching this space.
Placing a diverse leader isn'tjust filling a slot.
It's a strategic move thatsignals future readiness.
Chase Stratton (07:59):
So they help the
client An insurance
Tessa Sourceley (08:04):
policy against
blind spots is a phrase some
use.
Or framing success differently.
Chase Stratton (08:08):
How so?
Tessa Sourceley (08:09):
Like saying,
let's define success here not
just as filling the role, butfilling it with someone who
actually strengthens your globalreputation.
Chase Stratton (08:16):
That's quite
powerful.
So for you listening, you cansee how recruiters are trying to
balance advocating for changewhile meeting client needs.
Reframing limitations asstrategic opportunities.
Tessa Sourceley (08:27):
And to find
these candidates, they need
creative sourcing tactics.
Going beyond LinkedIn, youknow.
For the M-turn woman, it meansactively searching for those
ready to reenter, perhapslooking at different kinds of
networks or alumni groups.
Chase Stratton (08:39):
And looking
beyond obvious industry fits.
Tessa Sourceley (08:41):
Yes, the
industry crossovers.
Maybe a top female marketinghead from consumer goods could
be an amazing chief humanresources officer or even a
board member in a tech or pharmacompany.
Fresh eyes.
That
Chase Stratton (08:56):
makes a lot of
sense, bringing outside
perspectives.
Tessa Sourceley (08:58):
And geography
matters, too.
not just focusing on Tokyo.
Recruiters are increasinglylooking at regional clusters,
Nagoya for manufacturingleaders, Fukuoka for tech and
startups, Osaka for finance,healthcare.
Finding talented women whoaren't on the usual Tokyo
circuit.
Chase Stratton (09:16):
Hidden gems,
potentially.
Tessa Sourceley (09:17):
Absolutely.
And also looking insidecompanies for the hidden
leaders, those number two women,maybe mid-level, who have huge
potential but aren't externallyvisible yet.
A good recruiter can identifyand reach out to them.
Chase Stratton (09:29):
So the take-away
for you here is there are
concrete ways to find talentbeyond the usual suspects.
It requires challengingassumptions and looking
creatively.
That's how you gain an edge.
Tessa Sourceley (09:38):
It really
proves the talent is there if
you know where and how to look.
Chase Stratton (09:42):
Okay, so you
find the candidate, make the
placement.
Job done.
Tessa Sourceley (09:45):
Not even close.
That's really just thebeginning.
Candidate care and retentionare absolutely crucial,
especially for diverseplacements.
Chase Stratton (09:52):
This is where
the recruiter acts more like a
coach.
Tessa Sourceley (09:54):
Exactly.
A big part is pre-boardcoaching.
Preparing candidates for thisspecific I can imagine a yes in
a meeting
Chase Stratton (10:12):
might not mean
full agreement.
Tessa Sourceley (10:14):
It might mean I
understand or I hear you, not
necessarily I enthusiasticallyendorse this.
And coaching on consensusbuilding, which is often key in
Japanese decision making.
It can feel slower or differentfrom other cultures.
Chase Stratton (10:29):
So ongoing
support is vital.
Tessa Sourceley (10:30):
Critical.
Recruiters often help withvisibility boosting, encouraging
candidates to join relevantnetworks like the 30% Club Japan
to build connections andinfluence.
And very importantly,negotiation support.
Helping candidates,particularly women who sometimes
undervalue their worth,negotiate fair compensation
packages.
Chase Stratton (10:49):
That's really
practical support.
What about expat womenexecutives?
Are there unique challengesthere?
Tessa Sourceley (10:54):
Yes,
definitely.
For expats, addressing familyintegration is key to retention.
Things like finding the rightschools for children, helping a
spouse find career opportunitiesor networks.
If the family isn't settled andhappy, the executive is much
more likely to leave.
Reducing that attrition risk ispart of the recruiter's longer
term role.
Chase Stratton (11:14):
It really drives
home that true inclusion isn't
just about hiring.
It's about creating anenvironment, providing the
support so these leaders canactually thrive and stay for the
long haul.
Tessa Sourceley (11:24):
Wow.
Okay.
We have covered a lot of groundtoday.
We started with that startpicture Japan's economic
strength versus its lag inexecutive diversity, especially
for women, only 12% on boards.
Chase Stratton (11:36):
Then we explored
the untapped potential, the
M-turn women, a huge resource,and broadening the definition of
diversity returnees,non-Japanese leaders, age
diversity, challenging that oldpipeline myth.
Tessa Sourceley (11:48):
And finally, we
really dove into the
recruiter's role, not justfinding people, but being
strategic advisors.
Yeah, coaching clients, usingsmart sourcing, and providing
that crucial post-placement careand coaching to to ensure
success, driving real inclusion,not just checking a box.
Chase Stratton (12:04):
So this deep
dive makes it pretty clear, I
think.
Executive diversity isn't justsome passing trend.
Not at all.
It's fundamental, driven bybusiness needs, investor
demands, and just a growingunderstanding of what works
globally.
Tessa Sourceley (12:15):
Companies
getting this right are basically
future-proofing themselves.
Chase Stratton (12:19):
And those
ignoring it.
Tessa Sourceley (12:20):
They risk
falling behind, missing out on
better decisions, missing marketinsights, maybe even missing
crucial investment.
It's a global competitivenessissue.
Which
Chase Stratton (12:30):
leaves us with a
final thought for you to
consider.
A provocative question,perhaps.
We have this clear businesscase.
We have growing pressure, bothdomestic and global.
We have this ambitiousgovernment target, 30% women in
leadership by 2030.
Will that target truly be thecatalyst Japan needs for deep
systemic change in its executiveranks?
Tessa Sourceley (12:50):
Or will the
ingrained cultural norms, the
structural barriers wediscussed, continue to act as
brakes, making progress slow andmaybe keeping that 2030 30 goal
just out of reach?
Chase Stratton (13:01):
It's a crucial
question.
And maybe think about this too.
What role could you play inyour own company or industry in
advocating for or identifyingdiverse leadership talent?
Something to think about.
Thank you for joining us on TheDeep Dive.