Episode Transcript
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SPEAKER_00 (00:00):
Welcome back to the
Deep Dive.
Okay, let's start with a wordyou might not know, but it says
a lot.
Kurchi.
It's Japanese, and it literallymeans death from overwork.
SPEAKER_01 (00:10):
Wow.
Yeah, pretty intense, right?
SPEAKER_00 (00:12):
Exactly.
It kind of immediately signalsthis, well, deeply ingrained
work ethic.
But here's the thing that'sreally interesting.
In response to pressures likethat, and frankly, a whole host
of others reshaping Japan,there's this huge shift
happening inside companies.
SPEAKER_01 (00:27):
Really profound one.
SPEAKER_00 (00:28):
Yeah.
So today we're doing a deep diveinto the strategic rise of the
chief human resources officer,the CHRO, in Japan.
This role, you know, used to beseen as more back office, kind
of supportive.
SPEAKER_01 (00:39):
Admin stuff,
basically.
SPEAKER_00 (00:40):
Right.
But Now, it's becomingabsolutely central to, well,
business survival and growth inthis really unique, evolving
landscape.
Think of this deep dive as likeyour shortcut to getting your
head around this critical changeand why it actually matters.
SPEAKER_01 (00:54):
Yeah, and our goal
really is to give you clear
insights into how theseforward-thinking CHROs in Japan
are actively driving somemonumental changes.
We're talking about adapting tohybrid work, really championing
diversity, equity, andinclusion, DEI, and, you know,
significantly boosting employeeengagement.
SPEAKER_00 (01:14):
So they're taking HR
beyond just compliance.
SPEAKER_01 (01:17):
Totally.
They're transforming it fromjust a compliance department
into a real catalyst forinnovation and long-term
competitiveness.
You get a much betterunderstanding of how these
leaders are balancing Japan'ssort of deep traditions with
this urgent need fortransformation.
SPEAKER_00 (01:34):
And why
understanding that balance is so
important if you're engagingwith the Japanese market today.
SPEAKER_01 (01:39):
Exactly.
It's crucial.
SPEAKER_00 (01:40):
Okay, so to help us
unpack all this, we've dug into
a pretty rich set of sources.
We've got detailed articleslooking at how the CHRO role is
changing, profiles of some keyHR leaders who are really making
waves, insights from specialistrecruitment firms.
Yeah,
SPEAKER_01 (01:53):
the ones on the
ground there.
SPEAKER_00 (01:54):
And some honestly
fascinating anecdotes that
really bring the nuances ofJapanese work culture to life.
So let's jump right in.
SPEAKER_01 (02:03):
Let's do it.
SPEAKER_00 (02:04):
Okay, first off, why
now?
Why is HR suddenly seen as so,well, business critical in Japan
What's driving this shift?
SPEAKER_01 (02:12):
It's a huge shift,
almost like a revolution in
thinking.
Historically, yeah, HR wassupport, payroll, basic
compliance, that sort of thing.
But now it's really establishingitself as a strategic partner.
We're seeing more and more CHROson executive committees, even on
company boards.
SPEAKER_00 (02:28):
Really?
On the board?
Oh,
SPEAKER_01 (02:29):
yeah.
Especially in the multinationalfirms operating there.
These CHROs, they aren't justadministrators anymore.
They're vital partners to theCEO, the CFO, the COO.
Guiding talent strategy throughhuge initiatives like
restructuring, big digitaltransformations, going global.
They're right there at the tablemaking key decisions.
SPEAKER_00 (02:48):
Yeah.
SPEAKER_01 (02:48):
Deeply integrated.
SPEAKER_00 (02:49):
That makes a lot of
sense, especially with those big
strategic shifts.
But Japan is known for, youknow, its traditional corporate
structure, specific hierarchies.
SPEAKER_01 (02:56):
Very much so.
SPEAKER_00 (02:57):
How are these people
actually getting that influence?
Is it always a formal CHRO titleor are there like subtle ways
they operate within those oldstructures?
SPEAKER_01 (03:08):
That's a really
sharp question.
And it leads us perfectly intothis little anecdote we call the
title that wasn't.
It's actually quite common fortraditional Japanese companies
not to use the CHRO titleformally.
SPEAKER_00 (03:19):
Oh, interesting.
So what do they use?
SPEAKER_01 (03:21):
You get these, well,
long-winded alternatives like
General Manager of Human CapitalDevelopment and Planning or
maybe Executive Officer, HumanResource Strategy and
Organizational Innovation.
SPEAKER_00 (03:32):
Wow, that's a
mouthful.
SPEAKER_01 (03:33):
Right.
But the key thing to remember isdespite these sometimes awkward
titles, these people arefunctionally CH They're doing
the job.
They hold enormous influenceover culture, over talent
strategy.
Often their mandate goes waybeyond what the liberal job
description says.
It's about the function, really,not just the label.
SPEAKER_00 (03:51):
OK, so the title
might be traditional, but the
impact is definitely modern,strategic.
So what are the big underlyingpressures forcing this change?
What's happening structurally inJapan?
SPEAKER_01 (04:01):
There are several
really critical drivers, first
and foremost.
Demographics.
It's huge.
Japan's working age populationhas shrunk by over 10 million
people since 1995.
10
SPEAKER_00 (04:14):
million.
Wow.
SPEAKER_01 (04:15):
Yeah.
And the projections show it justkeeps declining steeply right
through 2050.
That directly impacts hiringretention.
It makes the talent warincredibly fierce.
SPEAKER_00 (04:25):
Okay.
Demographics is number one.
What else?
SPEAKER_01 (04:27):
Second, you've got
the slow but definite breakdown
of the lifetime employmentmodel.
SPEAKER_00 (04:33):
Oh, the classic
Japanese system.
SPEAKER_01 (04:34):
Exactly.
That's been a cornerstone fordecades.
But it's shifting.
And that has massiveimplications for how companies
attract, develop, keep people.
They have to compete differentlynow.
Third, new worker expectations,especially from, you know, Gen Z
and millennials.
They prioritize things likeflexibility, purpose, getting
feedback, stuff that wasn't sucha big deal for older
generations.
SPEAKER_00 (04:54):
Right.
Different priorities.
SPEAKER_01 (04:55):
And finally, there's
significant external pressure
from investors, even from theJapanese government itself,
pushing companies to raisewages, diversify who's in
charge, modernize how theyhandle labor.
SPEAKER_00 (05:06):
You mentioned
companies.
Right at the start, that deathfrom overwork idea, how does
that fit into these pressures?
Are CHROs actually tackling thatingrained overwork culture?
SPEAKER_01 (05:16):
Oh, absolutely.
It's a massive factor.
And it brings us right to thegreat overwork escape anecdote.
I mean, the fact that Japan evencoined the term karushi tells
you it's not just about likework-life balance.
It's a strategic issue with realsocietal costs.
SPEAKER_00 (05:32):
So what are they
doing?
SPEAKER_01 (05:33):
Well, some
progressive CHROs have put in
place really innovativemandatory vacation systems.
Things like randomly assigningdays off so people have to take
them or locking people out oftheir work email after certain
hours.
SPEAKER_00 (05:46):
Locking them out.
Seriously.
SPEAKER_01 (05:48):
Yeah.
Or even requiring employees toshow proof of travel like hotel
receipts to prove they actuallytook their vacation.
SPEAKER_00 (05:53):
That sounds extreme
but maybe necessary.
SPEAKER_01 (05:56):
Well and here's the
funny twist you mentioned about
it being deep seated.
One company offered a bonusabout 200 U.S.
dollars for taking fiveconsecutive days off.
They had to stop the programbecause they found out some
employees were secretly workingfrom their hotel rooms.
SPEAKER_00 (06:11):
No way.
Just to avoid falling behind.
SPEAKER_01 (06:13):
Exactly.
It just highlights how deep thatwork ethic runs.
So CHROs are innovating,definitely, but shifting those
cultural norms that have beenaround forever, that's a
constant battle.
It's about actively enforcingwell-being, even when the tide
pulls the other way.
SPEAKER_00 (06:30):
Secretly working
from hotel rooms.
I can't get over that.
It really shows the challenge.
Okay, so Given these intensepressures, the cultural stuff,
how are CHROs actually fightingthis global war for talent in
Japan?
What strategies are they using?
SPEAKER_01 (06:45):
Well, they're
basically reimagining
everything.
Recruitment, internal mobility,how people move within the
company.
They're launching innovativereskilling and upskilling
programs.
That's crucial because of thedemographic crunch and because
the skills needed are changingso fast.
SPEAKER_00 (06:58):
Addressing those
mismatches.
SPEAKER_01 (07:00):
Precisely.
And they're intensely focused onthe bilingual talent shortage
that's vital for any companyoperating globally from Japan.
Plus, introducing globalleadership development to groom
future leaders with a moreinternational perspective.
And a really key part of this ispartnering with top executives
Headhunters.
(07:45):
CHRO searches themselves.
And Stanton Chase in Tokyofocuses on finding those
transformational HR leaders.
SPEAKER_00 (07:52):
So they're using
specialized help to find the
right people.
SPEAKER_01 (07:55):
Definitely.
And others too, like HortonInternational Japan and Russell
Reynolds Associates, known fortheir rigorous analytics-based
approach.
These partnerships are basicallyessential now.
SPEAKER_00 (08:04):
It sounds like these
aren't just abstract ideas.
Can you give us examples of realCHROs who are leading this
charge in Japan right now, maybefrom different kinds of
industries?
SPEAKER_01 (08:12):
Absolutely.
The transformation is reallybeing driven by some very
influential figures.
Take Utai Nakamishi.
She's the SVP and CHRO atRenesas Electronics, a major
tech firm just appointed thisyear.
Her focus is global HRtransformation, building
inclusive high-performancecultures.
So that's tech.
Then you have Hugh Aoki, EVP andCHRO at NTT Data Group, also new
(08:35):
in the role, effective thisJune.
She's driving strategic HRacross their huge global IT
operations talent leadershipdevelopment.
SPEAKER_00 (08:42):
Okay, so tech and IT
are definitely moving.
What about more traditionalsectors?
SPEAKER_01 (08:46):
Good question.
Look at Keiko Uishi.
She's senior executive officer,head of global HR and CHRO at
Daiichi Sankyo, thepharmaceutical giant.
She oversees global HR strategy,making sure their talent matches
their international expansionplans.
It shows how even traditionalindustries are embracing modern
HR.
And it's not just individuals.
Fujitsu recently held a CHROroundtable led by their own
(09:08):
Hiroki Hiramatsu.
It brought together HR leadersfrom massive companies like
Ineos Holdings and YK Line,Sumitomo Mitsui Financial group,
Resonac Holdings.
Big names.
Huge names.
And they're collaborating oncutting-edge stuff, like
data-driven human capitalmanagement.
It shows this collective pushfor innovation happening across
industries.
(09:28):
You also have people likeMasayuki Nishida at CINZ
Corporation, a retailer who's onthe board of Jacquetro, shaping
best practices.
SPEAKER_00 (09:35):
Those examples
really make it concrete, which
brings us to culture change,Japan's famous for its deep
traditions.
How do these CHROs managereshape culture.
Moving from, say, harmonytowards agility, that sounds
like walking a tightrope.
SPEAKER_01 (09:51):
It is absolutely a
delicate balancing act, but it's
crucial.
CHROs are leading this culturaltransformation, often within
companies with really strong,long-standing ways of doing
things.
They have to balance traditionalvalues like wah, that's harmony,
group cohesion.
SPEAKER_00 (10:04):
Right, keeping
things smooth.
SPEAKER_01 (10:06):
Exactly.
And Nimawashi, the process ofkind of informal,
behind-the-scenes consensusbuilding, they have to balance
those with the modern need forinnovation, speed, agility.
It's not about ditchingtradition, but integrating it
smartly.
And Nemawashi leads to themeeting before the meeting
anecdote.
SPEAKER_00 (10:22):
Ah, OK.
Tell me about that.
SPEAKER_01 (10:23):
So a foreign CHRO
new to Tokyo, was totally
baffled.
Her proposals kept getting shotdown in formal leadership
meetings, even though herJapanese colleagues seemed
polite, nodding along.
It wasn't until a Japanese peerpulled her aside quietly and
said, essentially, you need todo Numawashi.
The real meeting happens beforethe meeting.
SPEAKER_00 (10:44):
Wow.
So you build the agreementprivately first.
SPEAKER_01 (10:47):
Precisely.
Consensus is often built inthose private, informal chats,
way before anything hits theofficial agenda.
Modern CHROs absolutely have tomaster these written rules if
they want their changes tostick.
It's a deep insight into howdecisions actually happen there.
SPEAKER_00 (11:02):
That's fascinating.
A whole hidden layer.
But how do you encourage opencommunication then in these
hierarchical places where maybespeaking up isn't the norm?
That seems like a huge culturalhurdle.
SPEAKER_01 (11:11):
It is huge.
And that brings us to thewhiteboard revolution anecdote.
A CHRO at a startup in Tokyo wasstruggling to get feedback
because of that culture wheredirect criticism or even just
speaking up is often avoided.
SPEAKER_00 (11:23):
The don't rock the
boat idea.
SPEAKER_01 (11:25):
Exactly.
So her solution, prettyingenious.
She put up anonymous feedbackwhiteboards in the office
bathrooms.
SPEAKER_00 (11:33):
In the bathrooms.
SPEAKER_01 (11:34):
Yep.
And one day someone wrote, let'shave standing meetings so they
finish faster.
Simple idea.
Within months, the companystarted this rotating Stand Up
Friday.
It's now like a celebrated thingthere.
It fostered more open, even ifstill indirect, feedback.
It shows that these small,culturally sensitive hacks can
actually work.
SPEAKER_00 (11:53):
That's clever.
Using the culture, not fightingit head on.
SPEAKER_01 (11:56):
Right.
And then there's the idea ofslow is fast in Japanese HR.
Picture this.
A European CEO, totallyfrustrated because rolling out a
new performance managementsystem took nine months in
Japan, while it only took threemonths everywhere else.
SPEAKER_00 (12:09):
I can imagine the
frustration.
UNKNOWN (12:11):
Yeah.
SPEAKER_01 (12:11):
But the Japanese
CHRO calmly explained, look, we
move slowly at first, do thenimawashi, get everyone aligned.
But once we start, it sticks.
You won't have to retraineveryone in six months like you
might in other markets.
It highlights thattransformation in Japan often
needs patience, needs theinternal alignment first.
But the changes tend to be morelasting, more culturally
(12:33):
embedded, because everyonegenuinely bought in.
It's a fundamental difference.
SPEAKER_00 (12:37):
Slow is fast.
That's a great way to put it.
Patience for long-term impact.
Okay, speaking of performancereviews, how do they navigate
feedback in a culture wheredirect criticism is tricky or
where maybe a three out of fivemeans something different?
SPEAKER_01 (12:50):
Ah, yes.
The Tatmé performance reviewanecdote fits perfectly here.
An American manager tried usinga standard Western five-point
rating scale in Tokyo.
He was completely confusedbecause his Japanese managers
kept rating almost everyone athree, middle of the road.
SPEAKER_00 (13:05):
Seemed like they
were avoiding conflict.
SPEAKER_01 (13:06):
Exactly, or avoiding
making clear distinctions.
The CHRO had to step in andexplain.
In Japan, giving someone a threecan actually be the equivalent
of a standing ovation.
SPEAKER_00 (13:15):
Really?
A3 is a standing ovation?
In
SPEAKER_01 (13:19):
that context, yes.
Because in a culture-prizingharmony...
Wa, giving top scores, cansometimes create unwelcome
competition or make individualsstand out too much, disrupting
the group harmony.
It's a classic case ofunderstanding the public face or
facade versus hunting theperson's true feelings or
intentions.
So CHROs, they don't just trainmanagers on the system, the
(13:43):
tool.
They have to train them on howto interpret and deliver
feedback within that culturalcontext.
What does that three reallymean?
How do you still give usefulfeedback without causing
friction?
It's subtle,
SPEAKER_00 (13:53):
incredibly subtle.
It really underscores how deepthat cultural understanding
needs to go.
OK, let's shift gears a bit todiversity, equity and inclusion.
How is Japan doing there,especially given, you know, it's
more traditional social normsthat might seem, well, different
from global goals?
SPEAKER_01 (14:08):
Yeah, it's
definitely an area where Japan
is moving.
Slowly but steadily.
But there's a long way to go.
Just to give you a concretenumber.
A 2025 report showed only 13.2%of management positions in Japan
are held by women.
SPEAKER_00 (14:20):
13%.
That's
SPEAKER_01 (14:21):
low.
It's one of the lowest among allthe OECD nations.
So progress is happening, butthat number really highlights
the scale of the challenge.
CHROs are right in the thick ofit, pushing against some deeply
entrenched norms.
They're launching women'sleadership programs, things like
returnship schemes, to helppeople, often women, get back
into the workforce as Like
SPEAKER_00 (14:41):
after having kids.
SPEAKER_01 (14:43):
Exactly.
And implementing more inclusivehiring practices overall.
The real trick is navigatingJapan's more conservative social
norms while trying to bring inglobal DEI frameworks.
They're also shaping things likeLGBTQ plus support, raising
awareness around neurodiversity,developing strategies for
including different generations,but always trying to find
(15:03):
uniquely Japanese ways to do it,respecting the existing culture
rather than just imposingsomething from outside.
SPEAKER_00 (15:09):
Finding that local
adaptation makes sense.
Okay, finally, what abouttechnology?
How is tech playing a role inthis whole HR transformation?
What's in the new CHRO toolkitin Japan, and are there unique
challenges in getting itadopted?
SPEAKER_01 (15:21):
Oh, technology is
absolutely central to this.
There's a massive push for HRdigital transformation.
We're talking talent analytics,AI tools for engagement,
internal job marketplaces sopeople can find opportunities
inside the company,sophisticated platforms to
improve the whole employeeexperience.
SPEAKER_00 (15:39):
So all the modern HR
tech.
SPEAKER_01 (15:41):
Pretty much.
But CHROs have this balancingact.
Push innovation, but staycompliant.
with Japan's quite strict APIprivacy law, which governs
personal data.
They're also working superclosely with the CIOs, the tech
chiefs, to roll out these new HRsystems across teams that might
be multilingual in differentlocations and a unique
challenge.
(16:02):
Managing change fatigue, sure,but also ensuring tech adoption
among older segments of theworkforce who might just be less
comfortable with constantdigital shifts.
SPEAKER_00 (16:10):
That makes sense,
especially with the
demographics.
SPEAKER_01 (16:12):
Yeah, and a couple
of data points really show the
ambition and the ongoingchallenge.
62% of Japanese companies nowsay HR transformation is one of
their top three strategicpriorities.
That's huge.
SPEAKER_00 (16:22):
Wow, nearly
two-thirds.
SPEAKER_01 (16:23):
But on the other
hand, Japan's hybrid work
adoption rate, still under 35%.
Compare that to over 70% in theU.S.
and Western Europe.
SPEAKER_00 (16:31):
Big gap.
SPEAKER_01 (16:32):
Huge gap.
And employee engagement scores,while CHROs are working really
hard on them, still remain amongthe lowest in Asia.
So it just shows the incredibleongoing effort needed.
It's not just about changingsystems.
It's about changing mindsets.
So, okay, as we wrap up thisdeep dive, let's pull out the
key takeaways from all thesesources.
First, it's clear.
(16:53):
CHROs are really taking centerstage in how Japanese corporate
culture is evolving.
They're way beyond just adminnow.
Second, and maybe the mostprofound insight here, is how
Japan's unique cultural DNA,things like Nemawashi, isn't
just a barrier.
Paradoxically, it's shaping anew, highly effective model of
HR leadership Well, they'releveraging that deep-rooted
consensus building to make rapidglobal standard changes stick
(17:16):
more securely, more permanentlymaybe, than in places where
changes are just pushed throughquickly.
Third, despite big challengesdemographics, the work ethic
Japan is pioneering some reallyinnovative talent and DEI
strategies that cleverly blendtradition with transformation.
And finally, the bottom line foranyone listening, if you're
looking to grow in Japan or justunderstand the modern market
(17:38):
there, Getting a handle on thecrucial, nuanced role of these
HR leaders with both deep localinsight and global smarts is
absolutely essential.
You just can't ignore it.
SPEAKER_00 (17:49):
What a fascinating
journey through Japanese
corporate culture and thispivotal role of the CHRO.
It really makes you think,doesn't it?
Considering how deeply thosecultural norms shape business in
Japan, what other seeminglysmall, culturally sensitive
hacks like that whiteboard inthe bathroom might be unlocking
engagement in workplaces allaround the globe that maybe we
just haven't noticed yet?