EURObiZ Japan March 2011

Shintaro Ishihara Q&A

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Why Japan needs both more immigration and more imagination

ALSO INSIDE //

Forget the stereotypes Managing Japanese staff

Green Biz

Gone fishin’ (sustainably)

Shintaro Ishihara Tokyo governor

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2011

THE MAGAZINE OF THE EUROPEAN BUSINESS COUNCIL IN JAPAN / THE EUROPEAN (EU) CHAMBER OF COMMERCE IN JAPAN

8 FOCUS

8 Forget the stereotypes Managing Japanese staff

By Rob Goss

14 Roundtable: Plug that leak Data security is about people, not computers

By Geoff Botting

22 We are the robots EU companies sell robots to Japan

By Martin Koelling

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5436 12 39 Cover photograph Jeremy Sutton-Hibbert

COLUMNS 7 From the Editor

30 In Committee

40 Who’s Who Directory

12 Q&A

The EBC Business Continuity Management (BCM) Committee was inaugurated last May. By Geoff Botting.

Education in Japan

David McNeill talks to Tokyo governor, Shintaro Ishihara

20 EBC committee schedule

32 Industry Experts Tax & Accounting

21 Executive Notes

35 Event Report

Dan Slater says that executives need the moral, as well as martial, virtues

Mammoth Hunting at the German Chamber of Commerce and Industry in Japan.

27 Chamber voice The Irish chamber of commerce’s membership is growing healthily.

28 Investing in Japan Some gifts (and business ideas) are smarter than others. Julian Ryall visits Smart&Co Japon.

36 Culture Shock Rob Gilhooly meets Danny Choo, IT entrepreneur and Japanese pop culture evangelist.

39 Green Biz Christopher S Thomas reports on sustainable tuna fishing.

52 Shop Window Shopping centres now account for 20% of total retail sales in Japan.

53 Upcoming Events Europe and Japan business-related events.

54 EBC Personality Former racing driver, Nico Roehreke, imports and sells luxury European cars, automobile parts and road bicycles. By Justin McCurry.

56 Lens Flair Before and after: Tokyo Marathon 2011.

58 Work Place Onno Jalink is representative director of BRITA Japan.

The Mission of the European Business Council To promote an impediment-free environment for European business in Japan.

March 2011

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Published by Paradigm 4-18-12 Takanawa, Minato-ku, Tokyo, Japan 108-0074 Tel: 03-5447-8831 Fax: 03-5447-8832 www.paradigm.co.jp Published monthly in Tokyo. All rights reserved.

The views and opinions expressed herein (other than editorials by the EBC ) are solely the opinions and views of their authors. The EBC is not responsible or liable for any portions thereof.

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If you prefer not to receive this magazine, and for all matters related to distribution, please send an email to eurobiz@paradigm.co.jp EURObiZ Japan welcomes story ideas from readers and proposals from writers and photographers. Letters to the editor may be edited for length and style.

Big in Japan: Running 42,195m dressed as Darth Vader.

Contributors Rob Gilhooly meets Danny Choo, page 36

Rob is a UK-born photographer and writer based in Japan for 15 years. He has contributed to publications worldwide including Time Asia, The New York Times,

To join the EBC visit

www.ebc-jp.com For more information please contact the EBC Secretariat.

Alison Murray, EBC Executive Director.

Tel: 03-3263-6222. E-mail: ebc@gol.com

Originally from Dartmoor in the UK, Rob has been living in Tokyo for more than a decade. He writes on a range of topics, from travel and culture to business and finance. His current clients includes Time, eFinancialCareers, Continental, Fodor’s, and many other publications around the globe.

“I think people often assume that doing business in Japan must be radically different to, say, the United Kingdom or United States.

But in the interviews I did for this story a common theme was that there are more

Roy Larke is the author of Shop Window, page 52

Roy is editor of JapanConsuming and professor of international marketing and Japanese business at Rikkyo University.

Having lived in Japan for more than 25

The Guardian and The Australian. He is a former staff writer at The Japan Times and in 2005 completed post-graduate studies in photojournalism under the tutelage of Vietnam War photographer Tim Page.

“It was with mild trepidation that I knocked on the door of Danny Choo’s office.

After all, it’s not every day you pay a visit to a self-confessed otaku with a highly valued figurine collection who occasionally goes around central Tokyo dressed as a character from Star Wars and dancing to ’70s disco.”

Rob Goss writes about leading a Japanese company, page 8

similarities than differences. One difficulty as a leader is overcoming those moments when the differences do arise, and that’s what this story really focuses on.”

years, he balances work as an academic with consulting in retail and consumer markets, and raising two small boys.

“Planned shopping centres are a relatively new phenomenon here, but there are already 3,000 of them nationwide and there is a huge difference between those that are well managed and those that aren’t.

Hit by the general downturn in consumer spending, only the very best are holding their own, attracting top tenants and adding serious consumer entertainment.”

F rom the E ditor

Tokyo story Tokyo is the story in the March 2011 issue of EURObiZ Japan. On page 12 we have a Q&A interview with the metropolis’s controversial governor, Shintaro Ishihara. He tells David McNeill that “it’s a wonderful thing to have different ethnicities mixing” and states his appreciation for Chinese culture. By the time you read this, we’ll probably know whether he plans to run for a fourth term or not.

Amidst the tragic aftermath of the Christchurch earthquake in New Zealand, and the ongoing turmoil in the Middle East, two of our stories offer important advice on preparing your business for the worst. Geoff Botting reports on the EBC Business Continuity Management Committee (page 30), inaugurated just last May, and also chairs a fascinating roundtable on data security (page 14).

This month we profile two highly

NEXT 3 Dealing with HQ Managing expectations MONTH

entrepreneur and Japanese pop culture evangelist whose personal website boasts 20 million page views a month.

Meanwhile, Justin McCurry meets former racing-driver Nico Roehreke who has built automobile imports into a $230 million business.

Lastly, our photo-story is of the 2011 Tokyo marathon. I had fun at the start and finish lines photographing some of the 36,000 runners (page 56). Amidst the blood, sweat, tears and more sweat, I witnessed Akihabara maids, circus clowns, at least two Darth Vaders, a galloping bunch of grapes, and a man with the Tokyo Sky Tree on his head.

Tony McNicol Editor-in-Chief

successful self-made men, albeit in very different businesses. Rob Gilhooly talks to Danny Choo (page 36), an IT 3 Another brick in the mall Lego profile

tonymcnicol@paradigm.co.jp

3 Chamber Voice

Francesco Formiconi of the ICCJ

March 2011

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Managing Japanese staff Text Rob Goss Photos TONY MCNICOL

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Supposedly, Japanese staff lack ideas and are rarely proactive. Nobody likes change. No one admits to failure. Decisions always come slowly. The list could go on and on. No wonder the prospect of leading a company in Japan can seem so daunting to many non-Japanese executives.

But it needn’t be. EURObiZ talks to non-Japanese CEOs and corporate coaches for advice on the challenges of leading a company in Japan.

Create a safe environment Philippe Grall, CEO of executive coaching and training company équilibre, says it’s important to look beyond the stereotypes.

“Non-Japanese and Japanese managers often have the same complaints: that Japanese staff can be too quiet, aren’t proactive, and have no ideas. But put yourself in the place of the staff,” Grall says.

“If the atmosphere you create as a leader isn’t safe – if it’s too judgmental, for example – people won’t feel able to give ideas and they won’t be proactive.

“It’s easy to put the reason on the outside by blaming a culture gap, but the problem can come from within the leader.”

David Swan agrees. As the managing director of Robert Walters Japan, the largest foreign recruitment firm in Japan, he has found that non-Japanese often misinterpret Japanese reluctance to put forward their ideas in public as disinterest or an unwillingness to participate.

“You just need to give Japanese staff another way to put forward their ideas and let them know they are

Andy White, Canning Professional Japan

David Swan, Robert Walters Japan

being listened to,” Swan says. This could be as simple as allowing staff to submit their ideas in writing, away from the pressure of a meeting room, using something like a public idea box.

Or it could be a technique similar to the one used by Ole Johansson, regional general manager Asia & Pacific for Scandinavian Airlines Systems (SAS).

He has got more input from his staff at SAS by encouraging them to prepare and submit questions to present in meetings. Not only does this encourage participation, but can also calm nerves among staff who are unsure of their English-language ability.

Johansson also has an open-door policy. Anyone can come and discuss issues directly and privately with him.

“At SAS we try to create an environment where there is no need to have fear, and we do everything we can to stimulate participation. I’ve seen active participation improve in the three years I’ve been here,” Johansson says.

Use the power of freedom “Allow managers to come up with ideas in a nonjudgmental environment, then let them make a plan with those ideas without any criticism of what they are doing,” stresses Grall. “Japanese, like anyone else, will come up with incredible ideas with this kind of freedom.

“After that, you can critique the ideas, but the timing is important. Save criticism to last and you’ll create an environment where staff will fully express themselves.”

One of the coaching exercises Grall uses is to take staff somewhere more relaxing than the office, such as a yoga studio. He recalls how he used this approach with one non-Japanese director of marketing who was having communication problems with his Japanese staff.

“His strength was coming up with ideas, while his staff felt more comfortable planning and analysing,” recalls Grall. “These character differences stopped them from communicating well, although they all assumed the difficulties were a result of cultural differences.

Ole Johansson, SAS

March 2011

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FOCUS

fluent in the language, but to earn respect you need to make the effort to show some understanding – even if it’s just learning about something like o-bon or family traditions,” he says. “A common problem for non-Japanese leaders is a lack of cultural sensitivity.”

“Through this exercise they were able to see that they each had different, but equally valuable, strengths. By then using the same process [as in the yoga studio] back in the office, communication is now better.

“The staff have even set rules for the meetings they have. Sometimes a meeting is designated just for ideas, sometimes it’s just for planning, sometimes just for critiquing,” Grall says.

Make Japanese employees feel involved Johansson says the time stereotypes about Japanese employees come closest to being accurate is when dealing with change.

“Day to day, SAS Japan feels almost like a Scandinavian company, and I don’t experience any of the stereotypes usually associated with Japanese staff.

But when we want to make organisational or administrative changes, things that might change working conditions, then it can become like a stereotypical Japanese company.

“Staff can be resistant to sudden change and it can be difficult to seize opportunities that require fast decisions or decisions based on intuition,” he says.

So what to do? Andy White is senior consultant for talent management at Canning Professional Japan, part of a global corporate training organisation with offices in London, Tokyo, Milan and São Paulo.

When introducing change, his advice for leaders is to make sure they involve other managers and staff, and turn decision-making into a collective exercise.

“The vision cannot come solely from an individual leader; it is a collective and consensual exercise. At the very least, Japanese staff need to feel that they have had some input into the exercise.

“A Western-style ‘visionary’ leader seen as the fountainhead of the vision probably won’t work,” White says.

“Of course, some Japanese companies use a top-down approach,” agrees David Swan. “But if you really want to get Japanese staff on board it’s very important that they feel they have been heard in the decision-making process.”

Meanwhile, the solution for Johansson, who leads a team of 50 mostly Japanese nationals, is “the situational leadership model”. He tries to avoid forcing Danish ideals on his workforce on occasions when the

Philippe Grall, équilibre

Japanese way might be better.

“The important thing is not really how I get results, but the results. I’m not fond of the Japanese way sometimes, but there are times I have to tolerate it to get the right results.”

Don’t assume motivation techniques from home will always work Pragmatism is a catchword. Don’t assume that what works elsewhere will necessarily work in Japan. White points to a “classic motivation mistake” he has seen on several occasions: Westerners, especially Britons and North Americans, singling out individual Japanese staff for praise in front of the rest of the group.

“I have seen the Japanese staff in such situations literally cringe and want the floor to open up and swallow them,” he says. “On one occasion, a very important member of a cross-functional project team resigned from the project and went back to his normal position – which was detrimental to the project and the individual’s development.”

For Johannson, however, there are some principles of management it is safe to assume apply anywhere.

“Of course, we expect people to do what they are paid for, but we are considerate about the work environment and social interaction. We give staff the opportunity to voice their opinions, and we respect everybody no matter their age, gender or status,” he says.

“We apply that to the extent it can be accepted here.”

And David Swan has a special tip.

You can get more out of your staff by showing an interest in learning about Japan. “You don’t need to become Japanese and you don’t need to be

Give your staff responsibility, but only when they feel ready for it But what about empowering your staff?

This is an aspect of leadership that White believes is “the trickiest area of all” for non-Japanese leaders in Japan.

“Japanese staff are not used to – in very general terms admittedly, with Toyota being a prime counter-example – individual development and empowerment,” White stresses.

“Collective training and development can be a massive waste of resources, and collective responsibility is only useful up to a certain point, so the non-Japanese leader shouldn’t be afraid of importing strategies to focus on developing and unleashing individual talent. The best Japanese companies do this, anyway.”

Take Toyota for example. One of the pillars of its production system is jidoka (automation with a human touch). Each worker on a Toyota production line is given the power to bring the entire line to a halt if they discover a defect. The company is also known for encouraging staff feedback, with many of the advances in Toyota’s production line technology and organisation the result of worker suggestions.

“Like in any culture, some people are good at taking on responsibility and others aren’t, but in my experience the Japanese will rise to the challenge if given that responsibility,” says Swan.

“They also tend to weigh the responsibility very carefully before accepting it, which can be misinterpreted as a reluctance to accept the responsibility.

I think it’s important to make sure staff feel ready for the responsibility and feel they have had all the training they will need to succeed.”

And if the staff succeed, then ultimately so does the leader.

Do you have an opinion on this topic you’d like to share?

Please post comments at www.eurobiz.jp or send them to eurobiz@paradigm.co.jp

March 2011

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Immigration and imagination David McNeill talks to Tokyo Governor, Shintaro Ishihara Photo Jeremy Sutton-Hibbert

Shintaro Ishihara has been elected governor of the Tokyo Metropolitan Government three times since 1999. A famously combative and by his own admission shorttempered politician, he has spent much of the last 12 years duking it out with bureaucrats, liberals and the press, leaving a string of controversial bon mots along the way. He tells EURObiZ Japan why Japan needs immigration and imagination.

Why is there this perception that Tokyo remains quite a closed city to foreigners and investors? It’s a long way from being a truly cosmopolitan city like, say, Sydney or London.

Well, I don’t know Sydney or London well. But if we stick to business, the tax system here is not good. Corporate tax is high compared to other countries.

We have to lower it first. We can’t do it suddenly because Japan is financially strapped right now, but as a target I think about 20%. Tokyo doesn’t have the power to do that. And there are a lot of regulations. If the state doesn’t change them, they won’t change at all. But the government bureaucracies are all pulling in different directions. I’ve been fighting bureaucrats for 25 years – that’s why I left parliament.

If you were prime minister, what would you do?

It’s shameful to criticise your own country, but there is no imagination or creativity here, not among bureaucrats or politicians. I’m talking about central government, not Tokyo bureaucrats who have changed a lot. They try to protect their own interests and constituencies.

So public administration is falling further and further behind the rest of the world.

There’s only one way to revolutionise 12

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Japan in earnest. As [Japanese novelist] Mr. [Yukio] Mishima said – military coup d’état [laughs].

What is Tokyo doing concretely to make this city more open to immigrants and foreign investment?

Well, that’s really a task for the national government.

You’ve surprised some people recently by saying that you would welcome more immigration. How many immigrants do you think Japan should accept?

I would let them come freely. Japan is a nation of immigrants. The original Japanese are Ainu and Okinawans – they’re the same race of people. The structure of their language is similar.

The rest have come from somewhere else. The Japanese monarchy comes from the Korean Peninsula. The imperial treasures: mirrors, necklaces, swords, if you go to Korea you’ll see many of the same things. It’s a wonderful thing to have different ethnicities mixing.

During the sakoku era [roughly 1633 to 1853] they closed the country off and people here were completely racially mixed. But our roots are in Pakistan, India, Malaysia, far Melanesia, as well as Korea and China. So it’s natural that they come to Japan.

A lot of people remember you for the sankokujin (a derogatory term to describe citizens of China, Korea and Taiwan) remark and there is this strong perception that you’re anti-foreigner.

Why do you think that is?

That’s a complete misunderstanding.

First of all, the use of the word sankokujin is legal. What I meant was that there are people who come to Japan illegally – mainly Chinese and Koreans.

That bunch is extremely dangerous to Japan. After Japan lost the war, Chinese, Taiwanese, especially Koreans took over the streets and did what they liked, usurping land from Japanese. I still have memories of that. But if ordinary foreigners come here legally and obey Japanese laws that’s fine. But a lot of people don’t, and I have to think of the safety of the streets.

So if I give this article a title like “Governor Ishihara puts the welcome mat out to Chinese immigrants”, that’s OK? No problem at all, as long as they follow our laws. I like Chinese and Chinese culture. I hate communism. Ordinary Chinese are frustrated with communism and their government and I say so straight out. We don’t discriminate against law-abiding Chinese.

Q&A

It’s shameful to criticise your own country, but there is no imagination or creativity here, not among bureaucrats or politicians

March 2011

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William H Saito, founder of I/O Software and an expert in encryption, authentication and biometric technology

Jiro Shindo, product manager at the Thales eSecurity division of Thales Japan, a world leader in information and communication systems solutions

Roundtable: Plug that leak Data security is about people, not computers Moderated by Geoff Botting Photos JEREMY SUTTON-HIBBERT

I

nformation security today involves a staggering array of cutting-edge technology: data encryption, swipe cards and biometric devices such as cameras that can authenticate people’s identity by reading the irises in their eyes. Yet for all that, the key factor is really people. When trust and education among employees is lacking, an organisation is easily vulnerable to a major breach of its data security.

EURObiZ sat down with three experts in data security to discuss the nature of their industry and the major issues it faces.

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FOCUS Geoff Botting, moderator

Jeffrey Seay, head of security and fraud risk at HSBC in Japan, where he is in charge of business continuity management, physical security and fraud risk

sometimes people don’t want to acknowledge a potential problem until it actually happens Jeffrey Seay

EURObiZ: Two huge incidents in recent months have highlighted some of the problems in information security: the massive disclosures by Wikileaks, and, closer to home, the leaking over the internet of a video of a collision between a Japan Coast Guard ship and a Chinese fishing boat. What lessons can be learned from these incidents?

William H Saito: In both incidents, a people problem was at work. This happens when you get a bad apple and a lot of data in one place. You need to have trust in your people, and that’s the issue that will keep you awake at night. Since then, there have been some Band-Aid approaches, just like closing the barn door after the horses have bolted.

Jiro Shindo: I think what the Wikileaks case shows is that, when [even] non-classified data is aggregated, it becomes valuable.

As William says, it was a people problem. You can have encryption and key technologies, and so on. But if you encrypt your data with the same key, then everyone will have the same key. However, if you use different keys and different technologies, you decrease your data’s portability.

EURObiZ: And the Coast Guard incident?

Shindo: In that incident, the security policies weren’t made

clear. When you have security policy and a policy document, it has to be transmitted to all the people.

Jeffrey Seay: Not just that, but everyone has to actually read that document, understand it and follow it. The problem we all have, whether a company or a government, is that we’re rife with policy and regulations.

The problem is not a lack of policy. However, the challenge is to keep our people focused on the existing security risks, with an understanding as to why the policies are there in the first place.

EURObiZ: Security in offices nowadays can be a major hassle for employees, thanks to multiple passwords, multi-layered procedures, etc. How can an organisation do a proper job of keeping its data safe without jeopardising productivity or driving its workers crazy?

Seay: A lot of it is education, continuing to put the word out.

We have mandatory information security-risk training and fraud-risk training but it’s also culture. You need to embed a certain culture of security and protection of information, and then that becomes part of the bank’s own culture.

For instance, everyone at HSBC knows they have to lock their computers if they’re stepping away from their

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while a large company such as HSBC can survive a large data breach, a small company is a lot less likely to survive Jiro Shindo

workstations for a while. They also know they need to clear their desks and secure sensitive documents before going home. These are simple examples, but they represent an embedded process that’s becoming cultural within HSBC. Let’s face it: good security by its nature is inconvenient.

EURObiZ: What about cloud computing, where more and more people are storing their data online? The Japanese government and companies are enthusiastically pushing this as the technology of the future.

Seay: While cloud computing may offer substantial cost-savings, from a security perspective, as a bank, we have issues with third parties controlling our information. The security just hasn’t been proven.

Shindo: When you sign up for a cloud, there’s usually a big clause in the contract that basically says, “We are not responsible for your data.” There are lots of issues. When servers are updated, for example, what happens to the old ones? Are they physically destroyed?

EURObiZ: Data leaks, usually involving the disclosure of customer data, regularly make headlines in Japan. Are Japanese companies and organisations especially prone to breaches of their data security?

Shindo: Japan is a bit ahead of the curve in one respect, in that it has had the Personal Information Protection Law since 2005. If you hold information on at least 5,000 people, according to the law you must notify them. But the maximum fine for non-compliance is a ridiculous ¥300,000 and maybe six months in prison.

True, it’s a regimented system, but it won’t change anything in terms of protecting data.

Saito: If legislation doesn’t have bite, then corporations don’t really care in many cases. There was a famous case in the United States in 1986, Dorothy Judd v Citibank. Someone withdrew a lot of her money. Back then, the burden of proof was on the customer. But she won the case, and so now the situation in the United States has flipped around so that the

onus is on the corporation to prove that the culprit caused the theft.

So the penalty became the company’s financial loss, and afterward you could see a shift in attention toward data security. Prior to that, many companies said, “So what? It’s an insurance problem.”

But Japan is back in the old days. And at the end of the day, sometimes the bottom-line costs serve as means to whip people into shape in information security.

Seay: Overall, I think there is a general lack of contingency planning here, and sometimes people don’t want to acknowledge a potential problem until it actually happens.

EURObiZ: How about small and medium-sized enterprises (SMEs)? Is it all that important for them to make big investments in data security?

Shindo: SMEs in Japan typically don’t invest very much in data security, maybe 5% of their budgets. But it should be higher because while a large company such as HSBC can survive a large data breach, a small company is a lot less likely to survive.

Saito: In Japan, I would think the amount of investment in information security is closer to zero among SMEs. Some of the small technology and engineering contractors, in places like Kawasaki and Higashi-Osaka, still have their records on paper. They don’t even use Excel!

Shindo: In Japan, the field is still seen as an IT issue. Most companies here don’t have chief information officers.

Seay: We certainly don’t look at information security purely as IT. It used to be, but now it belongs to people like me, as the head of bank security. It’s not just about computers; it’s about people.

Saito: I’m a security agnostic. I think that security really pervades everything we do, because humans have to be involved in it. I’ve seen threats in copy machines. So your next data security threat won’t necessary be inside your laptop. In the future, it might even come from your microwave oven.

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PROMOTION

photos: Kayo Yamawaki

New Home, New Era

By Felicity Hughes

D

esigned by the world-class firm of Pelli Clarke Pelli Architects (PCPA), Tokyo American Club’s eye-catching new structure in the heart of the city binds together design elements from Japanese and American culture to create a remarkable haven for its 3,300-plus Members from around the globe.

The Azabudai clubhouse is an elegant, inviting edifice that is the physical embodiment of cross-cultural pursuits. “The building, we think, is ultimately a fusion of these two cultures,” said the project’s lead designer, Bill Butler. “There are references back

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and forth, and there are elements that integrate each, but we’ve never attempted, if you will, to be literal about either.”

Sleek lines and a simplified aesthetic, including paneled-wood ceilings, inspired by Japanese design can be seen throughout the clubhouse, which are flawlessly integrated with plush carpets and bright pops of color that lend the place a homey, distinctly American ambience.

“I constantly want to go back to the idea of a grand house, which makes it very, very different from other institutional facilities,” said Butler, who has spent his 30-year career with Connecticut-based PCPA. The eight-story structure contains

numerous facilities for relaxation, entertainment and enrichment, including a crystal-domed rooftop swimming pool, seven restaurants and bars, library and DVD shop, bowling alley, spa, fitness center, gymnasium, squash courts, meeting spaces, childcare center and art gallery.

Situated at the heart of the building is the Winter Garden, a lofty area that boasts panoramic views of the city through its soaring windows, connects the formal and family wings, and acts as the club’s “living room.”

The space echoes design elements from PCPA’s famed Winter Garden in New York. While the Manhattan version is planted with palm trees, the club’s incarnation contains evergreen

Japanese soyogo trees that can thrive in the indoor environment.

The architects’ ultimate vision when piecing together the building was to extend the potential of each visit into a full, 12-hour day of recreation and repose. To do so, they optimized the myriad combination of activities and spaces while tapping into the natural surroundings of the hilltop location between the entertainment and business hubs of Roppongi and Kamiyacho.

“Architecture is a balance between a little bit of science and a lot of art, and it’s getting the two coordinated that ultimately yields a great building,” Butler said. “Of course, any building will evolve and change over time, and it should.”

Part of that systematic approach involved finding ways to ensure that, while making a hefty impact on the cityscape, the club would tread lightly on the environment through a series of ecologically sound elements. Those touches include the usage of sustainable materials, recycled water for the irrigation system, an abundance of natural light to cut down on heating bills and electrical usage, and rooftop gardens to offset the amount of heat pumped into the air.

To coincide with the unveiling of its impressive home, the club has launched a new category of membership as it seeks to expand its multinational community. With lower entrance fees and higher monthly

dues, the Term Regular Membership allows those who have been assigned to Japan for a shorter period of time or who are unsure how long they will be staying to enjoy the full range of lifestyle possibilities.

A limited number of venues and services are also now available to the public. The state-of-the-art conference and banquet rooms and breathtaking ballroom, for example, can be utilized by non-members, and club planners expect the facilities to be popular with couples looking for a unique location to tie the knot. Also, non-members can attend select wine dinners, lectures and other special events.

No matter where their interests lie, members and the larger Tokyo community alike will reap the benefits of the unique, multipurpose clubhouse and find plenty to enjoy for decades to come.

“The club has been designed to last beyond the typical 30- or 40-year lifespan of buildings in Japan. The other thing that makes a building kind of aesthetically sustainable is if people really love it,” said Fred Clarke, senior principal architect of PCPA. “We like to design buildings that people really love. They love being inside, they feel comfortable, they feel as if this is a home, and for us that’s a very critical attribute to Tokyo American Club.”

To learn more about the club and its various membership options, please visit www.tokyoamericanclub.org

R&R in the Heart of the City There was a sense of hushed anticipation as I walked into Tokyo’s new American Club one bright midweek morning. The conditions were perfect for viewing the freshly unwrapped building in Azabudai, and I was eager to explore.

I indulged first in an invigorating swim at the rooftop Sky Pool, where the air was so pristine that two national icons were visible from the outside deck: a snow-capped Mount Fuji and the nearby Tokyo Tower. Following a few leisurely laps, a rich latte beckoned me at Café Med, the Italian-inspired family eatery. By 10 a.m., the sunny spot had begun to liven up, and friends and families were ensconced in intimate booths, chatting away.

From there, I was whisked up to The Spa for a head massage, one of dozens of revitalizing treatments available. The marvelous scent of healing potions was equally comforting, followed by a soak in the whirlpool baths that left me so blissful I nearly got lost on the way to my next tranquil destination.

The Frederick Harris Gallery is a well-lit space that houses changing collections of remarkable artwork, this time around showcasing the sublime abstract lithographs of Toko Shinoda.

After digesting a bit of art, I was ready for lunch. The sun had warmed up nicely and the American Bar & Grill buzzed with midday activity. I was tempted by the chipotle mapleglazed Ibaraki pork chop, but instead chose, with a touch of self-discipline, what proved to be a succulent grilled vegetable wrap.

Seeking liquid comfort in the face of crushing defeat following a match in the bowling alley, I repaired to the nearest watering hole, Traders’ Bar. Inside the wood-toned pub, a monthly wine rotation spotlights different regions and labels for those seeking an alternative to ales and spirits. I opted for a refreshing glass of Californian Chardonnay, and, as the sun dipped beneath the cityscape, the golden liquid proved a wonderful accompaniment to the end of a thoroughly relaxing day.

March 2011

19

committee schedule

Upcoming meetings R Aeronautics & Space

R Environmental Technology

R Medical Equipment

12 Apr, Tue, 10:00-, off-site

14 Apr, Thu, 08:30-, EBC 16 June, Thu, 08:30-, EBC

24 Mar, Thu, 14:00-, off-site 21 Apr, Thu, 14:00-, off-site

R Food

R Railways

10 Mar, Thu, 09:00-, EBC 9 June, Thu, 09:00-, EBC

5 Apr, Tue, 08:30-, EBC 7 June, Tue, 08:30-, EBC

R Human Resources

R Sustainable Development

22 Mar, Tue, 19:00-, EBC 26 Apr, Tue, 19:00-, EBC

6 May, Fri, 09:00-, EBC

R Animal Health 27 May, Fri, 14:00-, off-site 23 Sep, Fri, 14:00-, off-site

R Asset Management 25 Mar, Fri, 12:00-, EBC 27 May, Fri, 12:00-, EBC

R Automotive Components 17 Mar, Thu, 16:00-, EBC 30 June, Thu, 16:00-, EBC

R Business Continuity Management 10 Mar, Thu, 09:30-, off-site

R Legal Services 19 May, Thu, 18:30-, off-site

R Materials

R Telecommunications Carriers R Telecommunications Equipment 17 Mar, Thu, 10:00-, EBC 16 June, Thu, 10:00-, EBC

25 Apr, Mon, 17:30-, EBC 29 Aug, Mon, 17:30-, EBC

Committee meeting dates are subject to change. Please contact the EBC secretariat for confirmation.

Tel: 03-3263-6222. E-mail: ebc@gol.com

Edelman’s 2011 Trust Survey: Good News for CEOs Edelman conducts an extensive survey each year gauging attitudes about the state of trust in business, government, NGOs and media across 23 countries.

Among the 2011 Edelman Trust Barometer key findings is growing trust for both business and government, a clear sign of perception that both are working together as compared to the recent past.

The good news is a growing trust for CEOs in the business sector. CEOs are preferred spokespersons (37%) over technical experts (30%) in the case of product recalls. Even more people want to hear from CEOs (38%) than third-party representatives (17%) or government officials (12%) when a community is damaged, such as last year’s Gulf of Mexico oil disaster.

But how does all this play out in Japan? CEO credibility rose an astonishing 14% from 2010 levels to a total of 67% in terms of believability.

The question concerns whether CEOs in Japan are ready to speak to the media in order to harness this increased trust. My experience is, while some are ready to engage the media, most CEOs have not effectively integrated key messaging sufficiently to influence various stakeholders.

As a result of economic challenges and very public corporate debacles, demand for authority and accountability has resulted in renewed expectations for corporate leadership.

Trust is a protective agent that leads to tangible benefits and sales; lack of trust is a barrier to change. CEOs

would be advised to polish their content and delivery skills in order to take advantage of recent trends.

David Wagner, who has worked in Japan for 25 years, is Director of Edelman Japan’s Communications Training Group.

You may see the entire Edelman Trust Barometer report at www.edelman.com/trust/2011/

EXE C UTI V E N OTE S

Be Good

Executives need the moral virtues as well as martial virtues Many Economist Corporate Network executives are excited at the prospect of visiting the USS George Washington, the Nimitz-class nuclear-powered aircraft carrier based at Yokosuka naval base. The USS George Washington is the spear-point of American power in the Pacific, and would be at the front of any unpleasantness involving North Korea or China. It has a flight deck of 18 km2 to accommodate 80 planes and can travel, literally, forever thanks to its nuclear propulsion.

Men tend to get a bit excited when viewing military hardware, and male executives are not averse to crediting themselves with the martial virtues (samurai salarymen, road warriors, etc.). But actually, all executives need to focus far more on being good rather than being fierce – at least according to a crop of recent research.

Over the past few weeks there has been an outpouring of articles on the nature of meritocracy (noting that it was our best and brightest that caused the worst recession since the second world war), social fairness (noting that the financial sector wins whatever hand it plays), and the metrics (noting that our “dashboard” of economic warning indicators seems to have been as effective as the Titanic’s). Magazines that have recently run cover stories on these topics include The Economist, The Nation, The Spectator and the Harvard Business Review (HBR).

The HBR cover story was written by none less than author and Harvard Business School professor Michael Porter, and it’s probably one of the most important business articles to appear this year.

His starting point is simple and compelling: that business needs to regain trust in the community, and that the old duality of “good for society” and “good for business” needs to be knocked on the head once and for all. For example, companies need to stop paying “blood money” for CSR programmes and other peripheral, and usually doomed, attempts to convince citizens of their good faith – and adopt a so-called “shared value” model.

Companies traditionally looked at anything not profitdriven as a “constraint”, but Porter argues that “the purpose of the corporation must be redefined as creating shared value, not just profit per se … creating shared value is our best chance to legitimise business again.” He adds that managers need to develop a “far deeper appreciation of societal needs, a greater understanding of the true bases of company productivity and the ability to collaborate across profit/nonprofit boundaries.”

Even more radical is his argument that companies need to stop gouging their suppliers for cost savings, or replacing whole departments with call centres in Bangalore.

“The solution lies in the principle of ‘shared value’, which involves creating economic value in a way that also creates

some multinational corporations are now selling food that is genuinely good for customers, as opposed to food that is addictive and highly damaging value for society by addressing its needs and challenges,” he writes. “Businesses must reconnect company success with social progress.”

Porter is not talking like a born-again hippy here. He focuses on productivity rather than price. Thus, big companies have to link up with small companies and help them improve their productivity through all kinds of high-value input – not push them to the wall with remorseless cost cutting. Higher productivity leads to higher salaries, which is better for workers and better for the economy. He criticises companies for “viewing value creation narrowly, optimising short-term financial performance in a bubble while missing the most important customer needs.”

Porter mentions the example of food, and how some multinational corporations are now selling food that is genuinely good for customers, as opposed to food that is addictive and highly damaging. One could add, too, that banks need to focus on what is good for their customers, rather than what is good for their own balance sheet.

What struck me on reading this article was how relevant the Japanese model is to Porter’s idea. Japanese companies have a close relationship with their suppliers; they invest in them financially and technology-wise, and they strive for long-term relationships. Small and medium-sized businesses in Japan have flourished in tandem with larger companies, rather than competing against them. Japanese customers are served with enormous deference.

Unfortunately, Japanese companies have been reading the earlier editions of the Harvard Business Review – when (pre-crisis) the authors encouraged slashing wages, ditching suppliers for cheaper ones abroad, and generally behaving in a way that maximises profit at the expense of workforce or other stakeholders.

The moral of the story is … don’t trust the experts and stay true to yourself.

Dan Slater Dan Slater is director of the Economist Corporate Network (www.corporatenetwork.com) in Tokyo, and you can reach him at danslater@economist.com.

March 2011

21

We are the

robots It’s hard to imagine a tougher business than selling robots to Japan.

But EU companies aren’t discouraged. photo: ABB

Text Martin Koelling

22

March 2011

FOCUS

J

apan is – by far – the most robotised country in the world.

It accounts for 34% of global robot demand thanks, in large part, to its highly automated car industry. By rights it should be a major market for European robot giants like Germany’s KUKA, Switzerland’s Stäubli or ABB, the largest robot manufacturer in the world.

But unfortunately, only a handful of European robots are at work in Japan.

“We are the biggest foreign robot manufacturer [in Japan], but we have a market share of [only] around 1%,” says Masakazu Takaya, vice-president of ABB’s Japanese arm. It is a grim situation, he adds.

To date, none of the company’s efforts to crack the Japanese market have worked. The company is market leader even in Japan for its automobile paint-atomising system and had hoped to sell robot systems on which to mount it. But ABB soon learned the hard way that customers insisted on putting the system on Japanese robots.

Things are just as tough in other industries. “In every single segment of the robot market we face three, sometimes eight, domestic competitors,” says Masaru Muramatsu, manager of ABB’s robot products department. “Unless you are much better in terms of functionality, quality or price, you cannot take market share.”

Robot industry global market share

Kawasaki Heavy (Japan) 10%*

Others 7%* ABB (EU) 30%

KUKA (EU) 10%*

Nomura Securities

Yaskawa (Japan) 19%

FANUC (Japan) 24%

Nevertheless, foreign makers are still looking for ways to enter the Japanese market. Some companies are promoting themselves in new niches, like robots for solar module production, automation in small companies, or service robots – a segment with much potential for growth.

According the International Federation of Robotics (IFR), the 2009 market for service robots was $13 billion and is set to increase dramatically. Service robots range from military robots to devices used to milk cows.

They also include robots designed to work in close proximity to humans on the factory floor. The IFR forecasts that the number of service robots in operation will increase to 80,000 units by 2013, more than all the service robots installed by 2009.

The German manufacturer KUKA, for example, is promoting its “lightweight robot” (LWR). The LWR is a robot arm that can be programmed for delicate tasks such as assisting hand welding. It is so sensitive that, even when moving at speed, it stops fast enough to avoid injury to humans nearby.

But perhaps the biggest chance for Europe’s makers is to convince Japanese companies to equip their overseas factories with European robots. That is an uphill battle; the Japanese market for robots is one of the most closed, doubly resistant to assault because – for once – it is not an issue of trade tariffs or obstructive regulations.

The problem is rather an army of strong domestic manufacturers defending their home turf with a combination of long-term business relationships and technological strength. European manufacturers need to maintain their persistence, because any hope that the Japanese giants might stumble appears futile.

The big three Japanese robot manufacturers together account for over half of global robot sales. In 2009 Fanuc was second only to ABB, followed by Yaskawa Electric and Kawasaki Heavy Industries, which share fourth place

Some companies are promoting themselves in new niches, like robots for solar module production, automation in small companies, or service robots with Germany’s KUKA. Not only is Japan beginning a huge replacement cycle of its ageing robot population, companies are set to benefit from continued growth overseas, especially in China where rising wages and the need to make economies of scale will force Chinese car manufacturers to automate their production.

“Robot demand in 2011 will be very strong,” predicts Wenjie Ge, an analyst at Nomura Securities.

The predicted Chinese robot boom, say analysts, may give European manufacturers a chance to gain some market share. “The Europeans are on the heels [of Japanese companies] and closing in,” says Toshiharu Morota of Deutsche Securities. As long as they can dissuade Japanese companies from using the same robots as back home.

European makers draw hope from the fact that, despite the odds, success is quite possible. In 1998 ABB introduced the FlexPicker, a multi-axis picking robot, to Japan. The robots look like five-armed spiders that hang from the ceiling and speedily sort small objects like cookies, parts or pills.

Even today, after the patents have expired and Japanese competitors are hot on the heels of ABB with cheaper models, the company still boasts a market share in Japan of 20%. A powerful sales tool for ABB is its comprehensive global service network; robotics is a highly service-intensive industry.

Takaya is bullish. “The market itself is growing, and many companies still come to us because we are the pioneer.”

* Figures are approximate

March 2011

23

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photoS: Aldebaran Robotics

FOCUS

NAO, le French-robot

Bruno Maisonnier is the founder of Aldebaran Robotics and the creator of NAO, the world’s most widely used humanoid robot for academic purposes. The company, with offices in France, the United States and China, has sold over 1,000 NAOs to universities and laboratories worldwide, including 30 to the robot department of the University of Tokyo.

Weren’t you nervous about trying to sell robots here? After all, Japan has a reputation as the world’s most advanced nation for humanoid robots?

Yes, but the question is more which robots and robotics platforms are accessible for universities and labs today. Take for example Honda’s ASIMO or HRP-2 [a humanoid robot project involving several organisations]. They cost in the hundreds of thousands of dollars. At the other end of the spectrum, you have inexpensive entertainment robots that don’t offer enough functions for the needs of research or education. To fill this gap, we launched a program last year to support educational projects with NAO, our humanoid robot.

What is so special about NAO? With a product range costing between €3,000 and €12,000, NAO is not only

communicate with both the user and other NAO robots.

How difficult was it to make a deal in Japan?

We were simply the most qualified in meeting the needs of the University of Tokyo, especially after Sony stopped its development of robots like the dog AIBO or the humanoid QRIO.

affordable, but also offers an open architecture, which means researchers, educators and students can easily develop new applications. On top of this, NAO is able to recognise faces, detect objects, listen, walk, speak and

To sell to the University of Tokyo seems to be a big breakthrough in Japan. Has it led to other contracts?

We had a strong academic following before selling to the University of Tokyo.

But the media coverage of “French selling robots to the Japanese” further propelled NAO globally, in Asia and in Japan.

Since then we have had an office in Japan to meet the needs of the Japanese market. It also was quite positive for the image of France as a high-tech nation.

March 2011

25

C hamber voice

Takeshi Tsukii

Ireland Japan Chamber of Commerce Vice-President Text EUROBIZ JAPAN Takeshi Tsukii’s connection with Ireland began when he was a student.

Influenced by a high school English teacher from Ireland, he ended up at college in Dublin. While studying, he had the chance to work on several Japanrelated business projects for the office of the Taoiseach (Irish prime minister).

On his return to Japan in 2002, he began promoting Irish business and set up CT Brand to create corporate branding strategies through brand design and architectural design graphics.

CT Brand’s projects have included designing the Irish pavilion at the 2005 Aichi EXPO and illuminating Tokyo Tower in green in 2007 to commemorate the 50th anniversary of diplomatic relations between Japan and Ireland.

Since 2010, Tsukii has been vicepresident of the Ireland Japan Chamber of Commerce, which was formed in January 2008 to replace the 35-year-old Japan Ireland Economic Association.

As one of the youngest European chambers it is still early days for the IJCC, Tsukii stresses. “The most important thing for us is to create the brand image of the IJCC as a business organisation,” he says. “[Luckily], the Irish business community is very tight-knit.”

Despite the lacklustre Japanese economy, and even tougher situation in Ireland, the membership of the IJCC is growing. They now have 100 members, up from 80 members six months ago. “The chamber’s student membership category is particularly popular, and we hope that one day they will become associate or professional members,” says Tsukii.

The corporate members of the chamber are mostly Japanese. A number of companies headquartered here have

business in Ireland, attracted by Ireland’s investment and tax system. Professional and associate members are mostly Irish nationals. “It’s a good way for them to meet other Irish people and people with an interest in Ireland,” says Tsukii.

As one of the youngest European chambers it is still early days for the IJCC Despite Ireland’s economic travails, exports to Japan are up, helped by the strong yen and weak euro.

Foreign direct investment to Japan is also strong, notably from the IT sector which hopes to find business opportunities as the new 4G mobile communications network takes off.

The big event of the year for the chamber is the seasonal dinner in December. A close second is St Patrick’s Day in March. The IJCC also has a lively networking event on the third Thursday of each month at a chamber member Irish pub.

The chamber also recently commenced a series of “Insight Ireland” talks. The first event of 2011 was a talk

by Dan Slater of The Economist Group.

In February, Hiroshi Nonomiya, managing director of RHJ Holdings, came to talk about mergers and acquisitions.

A major occasion last year was the visit by Patrick Honohan, governor of the Central Bank of Ireland.

The Irish pavilion at the EXPO 2005 Aichi

Tokyo Tower lit up in green for St. Patrick’s day

March 2011

27

We believe that people want less tangible things as gifts

Smart&Co Japon 3 Established in France in 2003; established in Japan in July 2008 3 Global HQ in Paris 3 Turnover of â‚Ź465 million a year 3 Global staff of 1,000; Japan staff of 14 www.smartbox.com

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March 2011

I nvesting I n J apan

Out of the box Smart&Co Japon Text Tony McNicol Photo Anthony Tran

L

ike business ideas, some gift ideas are smarter than others. Smartbox gifts have soared in popularity since they were first launched in France in 2003, growing into a €465-million-a year business, and available in 20 countries, including Canada, Australia, China, the United States and, since July 2008, here in Japan.

Smart&Co’s Smartboxes are cased booklets offering a choice of experiences ranging from sky diving and spa treatments to theatre tickets and stays in top-class hotels. They come with a gift voucher for the recipient and one other person, redeemable at a venue of their choice.

Smartboxes available in Japan range in price from ¥5,000 for a selection of 145 establishments across the country that offer entertainment for two people, such as a trip to a jazz club or flower-arranging classes, to the most luxurious gift of a ¥49,900 two-person stay at one of 65 hotels.

“The concept plugs in very well to the new trend for emotional products,” says Herve Couraye, managing director of Smart&Co Japon. “We believe that people want less tangible things as gifts and are seeking more intangible services that provide positive emotions based on activities.”

Divided into four categories – getaways, dining, activities and wellness and beauty – the Japan gift boxes come in 10 different collections with 955 locations that are ideal for all gift-giving occasions, from birthdays through Christmas and weddings.

The concept has worked in every market in which Smart&Co have launched so far, although competition has been stiffer in Japan simply due to the number of other specialist gift companies.

“Even now, we still face a lot of challenges in this market,” he says. “We have arrived in a country with a new concept and people here are always interested in new things and trends, but that can also be risky because consumers want to feel confident about something new.”

Couraye says a mistake made by many companies entering the Japanese market is expecting a rapid return on their investment. The trick, he believes, is to think of a long-term presence.

“Basically, 2009 was the first year to understand the market drivers in Japan and 2010 was then the year to succeed, commercially speaking,” he says. “Our plan has been partially attained so far, and, since we established the subsidiary, our expectations are as high as our commitment to this market.”

The company sells Smartboxes through retail outlets, via

its website and business-to-business; the most popular gift boxes are the dining out and spa options.

Around 80% are bought to be offered to another person as a gift, and the remaining 20% are purchased by customers to treat themselves. Demographically, more customers are female and aged between 30 and 50, although Couraye is quick to point out that the product appeals to both sexes and all age groups, while something in one of the boxes is sure to appeal to even the most choosy of recipients.

The content of the boxes is altered once a year in Japan – but as often as every month in France, where the concept has already gained traction – with Smart&Co often contacted by potential partners.

“The collections are put together by ‘conception’ teams and, for example, when they are creating the dining selection, they want to include a place that you would not expect to find but are delighted by the experience,” says Couraye.

“We want to provide the gift of a memory or a souvenir, not just include a four-star restaurant because you know the meal there would be good. It’s about going to new, surprising places and having fun.”

Quality is another component crucial to success in the Japanese market.

“Japan is a market in which it is very easy to go up, but when you have a problem with a product or a partner, then the damage is done and you can come down just as quickly,” Couraye says.

And while Smart&Co is still trying to devise the most appropriate and effective form of marketing for its product here, the very best advertising comes in the form of a personal endorsement of a Smartbox from a friend, family member or colleague.

“Even though we have around 80 competitors in Europe, we still have 60% to 70% market share there.

“It is all down to the quality of what is inside, and passed on by word of mouth.

We are trying to leverage that in Japan.”

March 2011

29

Business Continuity Management// New committee will help you get ready Text Geoff Botting

Jason Quigley spends his days at the office imagining deadly pandemics, massive earthquakes and devastating fires, among other scary scenarios.

As manager of business continuity planning (BCP) at HSBC Japan, envisioning such nightmares is part of his job.

“Sometimes it seems too much doom and gloom, not happy stories,” he says.

“But ultimately I really like my job … I manage to sleep well at night, although maybe not before a big presentation.”

Quigley’s other responsibility is chairing the EBC Business Continuity Management (BCM) Committee, which was inaugurated last May. BCM is all about ensuring that companies are able to continue functioning during or after serious disruptions.

These can range from the disasters that occupy Quigley’s thoughts, to disasters of the PR kind, such as that which engulfed Toyota during its global recall last year.

Gordon Moir, a committee member from TÜV Rheinland Japan’s strategy and business development department, and a BCM lead auditor, says a main task for the new group is to educate and raise awareness on the topic of business continuity.

Continuity and resilience is by no 30

March 2011

Definitions k “BCP is about planning for specific business interruptions using procedures compiled and developed in readiness for use in an incident, in order to deliver critical activities at an acceptable predefined level.” k “BCM involves managing the recovery and continuation of business activities within an overall framework, which ensures business continuity plans remain effective, valid and continually improve.”

Gordon Moir, TÜV Rheinland Japan

means a new thing, yet until recently it was more associated with emergency, civil and armed services, and has only just become an established business field in its own right, he says.

“There is still a lot of misunderstanding. Many organisations have still not been informed about exactly what business continuity management and business continuity planning are, what the differences are, and how they apply to different industries and different situations. We try to explain things so that everyone in the committee has a basic understanding of what BCP and BCM are,” Moir says.

“BCP is about planning for specific business interruptions using procedures compiled and developed in readiness for use in an incident, in order to deliver critical activities at an acceptable predefined level,” explains Moir.

“BCM involves managing the recovery and continuation of business activities within an overall framework, which ensures business continuity plans remain effective, valid and continually improve.

“This framework allows organisations to manage numerous or combined incidents or interruptions in all aspects of the business and at all levels of the business.”

The committee may be young, but nearly 20 member companies have already signed up. Quigley welcomes anyone else with an interest in the field.

The group organises talks by risk-mitigation experts followed by question and answer sessions. Four meetings have been held to date, covering IT security, earthquake risk, BCM trends locally and overseas, and crisis-management case studies from a consultancy group.

“It’s a great forum for people to talk about their different areas. Business continuity covers so many things.

I n C ommittee

Essentially it is about organisational resilience,” Quigley says. “Each industry has different ideas, but people are number one all the time. That’s the common theme.”

Quigley says no lobbying efforts are currently being planned, although he hopes the Japanese government will continue its efforts to be transparent on how all financial institutions should operate in the event of serious disruptions.

Another potential issue is the lack of common international BCM standards outlining business continuity procedures.

In this era of global warming, avian flu and heavy dependence on online communications, BCM has become a critical necessity for many corporations, albeit one fraught with a slew of technical challenges.

Quigley says a major part of his job at HSBC is to hold regular drills among senior management and co-workers so they will know what to do in the event of a major disruption to the bank’s business. The scenario of a recent drill was flooding at HSBC Japan’s Nihonbashi headquarters building, and the relocation of critical staff to a backup site facility.

A lesson learned during these drills is that the best-laid plans can easily come to naught, especially in today’s workplaces, where access to entire floors is often highly restricted.

Solutions such as utilising alternate workspace, displacing non-essential staff and enabling remote access are critical to the continuation of operations.

“However, things that you don’t expect are usually the biggest obstacles.

For example, maybe you have a stateof-the-art backup site, but you can’t remember your computer password,” Quigley says.

3.7 million people walking home The potential disaster that concerns him the most in Tokyo is a major earthquake. In late 1995 Quigley visited Kobe, where he saw damage caused by the Great Hanshin Earthquake.

“We live in one of the most densely populated cities in the world so there are a lot of challenges,” he says.

“In the event that a major disaster strikes during the workday, say 10 or 11am, 3.7 million people would have to walk home. You would also have people who are highly agitated, afraid and concerned about their families.

Things that you don’t expect are usually the biggest obstacles. For example, maybe you have a state-of-theart backup site, but you can’t remember your computer password Jason Quigley “With my job, providing relevant and timely risk information to staff is more important than continually shocking and scaring people,” Quigley says.

“The main point of the exercise is to remind them why we’re doing this in the first place.”

Do you have an opinion on this topic you’d like to share?

Please post comments at www.eurobiz.jp or send them to eurobiz@paradigm.co.jp

March 2011

31

Industry experts | Tax & Accounting “Enabling you to compete better and accomplish your goals in Japan”

Japan is the largest non-English-speaking economy in the world producing a significant portion of the world’s automobiles, machinery, chemicals and other high-tech products. While doing business in Japan is exciting and offers plenty of opportunity, the country’s unique culture, less familiar commercial practices and difficult language make it a daunting challenge for most foreigners. The blue tax return system, among others, is typical of such challenges.

Largely due to several privileges associated with blue tax returns – such as carry forward net operating losses, special measures for depreciation, etc. – a large number of companies presently file this way. Under the blue tax return system, a company is required to keep proper accounting records, maintain accounting books and reports of its income for the most recent seven years at the Japan Office, properly in Japanese yen.

Such books and records include original supporting documents (i.e., suppliers’ invoices, receipts), general ledger and sub-ledgers, balance sheet and income statement, journal entries and vouchers, summary sheet of consumption taxes and tax returns. Books and records can be maintained in a foreign language, but tax returns must be in Japanese.

32

March 2011

With the right partner, these challenges can be overcome. ECOVIS APO offers trusted Economy & Vision to make your business a success in Japan.

We incorporate four professional enterprises to provide a comprehensive one-stop service to meet local regulatory requirements. AP Outsourcing Ltd. handles accounting and payroll outsourcing, pivotal for foreign firms here. APO_Tax Corporation puts clients at ease with its tax compliance services. APO_Social Insurance Consultant Corporation addresses social and labour insurance needs for a client’s greatest asset, its employees. Kazuhiko Chiba & Co. serves as an audit and business advisor.

For information about our practices – enabling you to compete better and accomplish your goals in Japan – please contact Kazuhiko Chiba at kazuhiko.chiba@ecovis.com Ecovis is a leading global consulting firm with origins in continental Europe.

We have over 3,300 people operating in more than 40 countries. Our consulting focus and core competencies lie in the areas of tax consultation, accounting, auditing and legal advice.

The particular strength of Ecovis is the combination of personal advice at

a local level with general expertise of an international and interdisciplinary network of professionals. Every Ecovis office can relied upon for qualified specialists in the back offices, as well as the specific industrial or national knowhow of Ecovis experts worldwide. Such diversified expertise provides clients with effective support, especially in the fields of international transactions and investments – from preparation in the client’s home country to support in the target country. In this type of consulting work Ecovis concentrates mainly on mid-sized firms. Both nationally and internationally, our one-stop-shop concept ensures all-round support in legal, fiscal, management and administrative issues.

The name Ecovis, a combination of the terms ‘economy’ and ‘vision’, expresses both our international character and our focus on the future and further growth. www.ecovis.co.jp

Industry experts | Tax & Accounting “Foreign entities in Japan must perform various compliance procedures that involve submitting relevant documentation in a timely manner throughout the year”

The accounting, payroll and tax issues of foreign companies in Japan demand special attention and expertise. Speaking the local language and understanding Japanese tax laws remains essential for accurate computation and compliance. But in Japan, not only are bilingual accountants few and far between, but it can also be a challenge to determine that their expertise and training can provide quality work.

A reputable, well-established firm in Japan can offer web-based accounting services to address such exacting needs. Okamoto & Company (O&C), a three-partner firm, is one of the premier accounting service providers for companies in Japan, and was established in 1992 and incorporated in 1996. Among its dozens of qualified and experienced bilingual professionals are CPAs from Japan, the US and China; licensed tax accountants and CIAs; social insurance and labour specialists; and CISAs and CFEs. The firm is also one of a handful of audit firms in Japan registered with the US PCAOB (Public Company Accounting Oversight Board) in the US and also a member of Kreston International, a global network of independent accounting firms that is in 95 countries with 700 offices.

In Japan, special tax measures for SMEs went into effect for companies with fiscal years beginning April 1, 2010. In essence, domestic subsidiaries with paid-in capital of ¥100 million or less will no longer be eligible for certain special tax benefits previously available to SMEs, if the parent company (and/or the ultimate parent with wholly-owned interest) has paid-in capital of ¥500 million or more.

The reduced benefits include the elimination of the lower 18% corporate tax rate up to ¥8 million; and will result in a single tax rate of 30%. In general, entertainment expenses will no longer be considered deductible, and carryback of NOLs are no longer permitted. An exemption from the special tax rate applicable to specified family corporations (dozoku kaisha) has been abolished and a 10-20% tax rate is now applied on excess retained earnings. The deductibility of bad debt provisions is now based solely on the prior years’ actual bad debt ratio, so that the standard industry ratios can no longer be applied.

Foreign entities in Japan must perform various compliance procedures that involve submitting relevant documentation in a timely manner throughout the year. O&C can provide audits of foreign subsidiaries’ financial

statements, annual report translations and conversions into US GAAP or IFRS. Accounting, payroll and taxation, in association with Hiroko Hanato Tax Accountant Office, are common areas for outsourcing, allowing a company’s limited human resources to be dedicated to its core business. But O&C also offers a range of services, including SAP support, internal auditing, forensic accounting (related to actual or anticipated disputes or litigation), consolidation procedures (intra-group transactions between parent and subsidiary), and preparation of note disclosures (of related organisations).

O&C can act quickly in supplementing your accounting team in case of a sudden departure of an employee or new projects requiring additional accounting staff, whether it be for several months, or for only a week.

Okamoto & Company Tel: 03-5276-0900 Email: contact@okamoto-co.co.jp www.okamoto-co.co.jp

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Industry experts | Tax & Accounting

“The solutions are not formulaic, but rather address the particular demands faced by the client”

Outsourcing tax and accounting procedures is not only about helping companies get the job done. It is also about satisfying auditors and authorities.

Foreign enterprises operating in Japan need to meet the compliance procedures of more than one country. That’s where Nagamine & Mishima’s integrity, knowhow, expertise and experience in crossborder accountability can empower clients and their businesses.

Since 1989, Nagamine & Mishima have been assisting foreign-affiliated firms expand their business operations in Japan, assigning bilingual staff with expertise in tax and accounting. They will consult with the client internally and respond in the shortest possible time.

Nagamine & Mishima can report directly to the financial staff of the client’s headquarters, enabling local Japan staff members to focus on their respective tasks at the company. They are the Japanese member firm of Praxity, a global alliance of independent accounting firms and the 9th largest in terms of size among accounting networks worldwide.

In the area of accounting and tax services, there is first an analysis of the best approach, based on whether a company is a local incorporation, a branch, or a representative office, etc. A proposal is then made on the optimal method for

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foreign-affiliated enterprises planning to launch business operations in Japan.

Nagamine & Mishima offer expert advice on various tax-related issues that foreign companies often encounter in Japan. The solutions are not formulaic, but rather address the particular demands faced by the client.

Japan’s system of payroll and social insurance is complicated. Nagamine & Mishima’s certified insurance labour consultants can carry out representative services to prepare and submit the various forms for application. These can relate to acquisition/loss of qualification of employee pensions, health and employment insurance, standard salary calculation, etc. Also possible is compilation of labour insurance declarations.

Nagamine & Mishima have several tax counsels, all of who are well known in the tax field and are former National Tax Authority personnel.

When it comes to audits and due diligence, these procedures are carried out at the request of M&A (mergers and acquisition) or parent companies wanting discretional audits. The demand for corporate restructuring services is on the rise in the wake of the current rapid progress in globalisation. Foreign enterprises adopt various approaches such as the acquisition of shares of existing corporations, the acquisition

of operations of existing corporations through restructuring by transfer of business and merger/demerger.

Nagamine & Mishima also respond to tax authorities at home and abroad tightening surveillance systems through “transfer price taxation” in order to keep a closer watch on multinational enterprises engaged in international transfer pricing. Services entail evaluating tax risks by conducting an interview with the client’s relevant staff, and by gathering and analysing internal data related to transactions with the parties concerned.

In this way Nagamine & Mishima can offer proposals articulating appropriate and distinctive policies for the management of transfer pricing.

Compliance and accountability remain crucial considerations for foreign enterprises doing business in Japan.

Nagamine & Mishima Tel: 03-3581-1975 Email: info@nagamine-mishima.com www.nagamine-mishima.com

EVENT REPORT

Map for success Introduction to mammoth hunting

23 February 2011, the German Chamber of Commerce and Industry in Japan Text and photos Tony McNicol

“What mammoths are you hunting?

Do you have the right tactics? Are you implementing them?” Those questions of primal importance were posed by Mammoth Hunters K.K. founders David Todd and Anthony Willoughby (pictured) to participants in a workshop at the German Chamber.

The executives, from a range of sectors, were asked to draw mammoth hunting maps, visual representations of their business goals and challenges. The aim was to envisage the “mammoths” a business needs to pursue, create an action plan, then hunt them down.

As well as office-based sessions Mammoth Hunters invite executives to two training locations: in Nagano prefecture, and close to the Great Wall of China. Founded as a limited company just last year, Mammoth Hunters followed on from Territory Mapping, a technique Willoughby developed to “bring visual and emotional clarity to business strategy.” It was inspired by his personal friendship with the Papua New Guinea ambassador to Tokyo.

Willoughby has 30 years’ experience leading journeys and expeditions, including to Mount Kilimanjaro in Tanzania and Mustagh Ata, a 7546m peak in China. His colleague David Todd is a former officer in the British Army and founding partner of financial products company Compass Capital Consulting.

During the session each participant, from a range of different businesses, explained their map. After seeing one map the group came to the consensus that the owner was scared of going after the really big mammoths – despite over 20 years in the market.

One company was hunting a particularly crafty mammoth. Despite being a multinational, their Japan branch needed more “global thinking”. After many decades in the Japanese market they were “effectively a very wellestablished Japanese company,” said the executive.

Another participant pointed out the challenges operating in a “non-growth market”. “My salesperson came to me excited and happy that sales are exactly the same as last year,” he recounted in amazement.

EURObiZ’s mammoth hunting map

… A TRIP ACROSS Papua New Guinea with 24 bottles of wine and no food One labyrinthine map of issues and challenges had the participants scratching their heads. Eventually it was agreed that “sometimes you just need to start”.

Mammoth Hunters have worked with a wide variety of different companies and people of many nationalities.

The only difference between Japanese and non-Japanese participants, said Willoughby, is that Japanese tend to draw their maps from right to left.

A tendency that all groups – from whichever organisation – share is that individual members draw completely different maps. Hence, the final stage of the mammoth hunting process is to draw a joint map for everyone.

“This all began from experience,” Willoughby told participants. Over the decades, Willoughby has taken many business people to spend time with indigenous tribes in Africa to, as he put it, “obtain a better understanding of decision-making, strategy and leadership development.” One particularly productive trip involved traversing Papua New Guinea with 24 bottles of wine and no food.

“In the 1980s when I was working with business teams,” he explained, “nobody knew where they belonged. But every indigenous group I’ve ever worked with knew exactly where their territory was, where they belonged.”

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Super ‘trooper Text and photo Rob gilhooly

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C ulture S hock

T

here’s a chance you have met Danny Choo. Perhaps around Shibuya, or Akihabara – his favourite stomping ground – or even aboard a train. He’s instantly recognisable, dressed, as is his occasional wont, as a Star Wars stormtrooper, dancing to Let’s Groove Tonight by Earth Wind & Fire or Uniting Nations’ take on Ai no Corrida.

“When I was a kid I always wanted to be a stormtrooper,” says the UK-born Choo, 38, a self-confessed otaku and CEO of Mirai Inc., a web and TV production company that promotes Japanese pop culture through blogging, TV and other media.

“So I bought the suit online and my wife shot some videos and uploaded them. People seemed to like them.”

Those videos since have amassed some 10 million views online, even attracting favourable feedback from Lucasfilm and a link to one of them on the official Star Wars homepage.

Choo’s entry into the battleground of Japanese business is equally stormtrooper-esque.

Inaugurated in 2007, Mirai Inc. first focused on web development. Yet Choo’s personal blog site promoting his primary passion – figurines, and other aspects of Japanese pop culture – soon began to draw the attention of fellow enthusiasts and Japanese figure, game and anime makers.

Today, dannychoo.com attracts 20 million page views per month, and his clients past and present include Disney Online Japan, Columbia Japan, and hobby-product designer Good Smile Co. “I’ve just been contracted to make a website for [anime company] Starchild, who have asked me to do their overseas marketing, which I’m over the moon about,” says Choo. “It’s like another dream come true.” His office is dominated by dozens of figurines –“my girls” as he calls them – that he has collected since first coming to Japan in 1999.

But Choo’s early life was rather less cosy. Born to Malaysian parents in Hackney, one of London’s less glamorous boroughs, Choo confides that he has few but unhappy memories of his childhood.

He decided to formalise his studies, enrolling in a language course at The University of London. “I continued to work part-time to get the money to go to Japan. I had discovered something I felt passionate about and I was determined to get there any way I could.”

Eventually, he fulfilled that goal and was hired by Japan Airlines as a computer engineer, employing PC skills that, he says, were “learned from Yahoo!”.

His web-designing talents subsequently gained him employment at Amazon and Microsoft, and it was during his time with the latter that he began his now renowned blog.

“My aim was to create my own web business, but just by writing on my blog about pop culture, businesses started approaching me,” explains Choo, who also directs and presents the weekly pop culture TV show “Culture Japan”, screened in Japan and throughout Asia.

“I believe [Japanese pop culture] is a feasible business model, but it’s not enough just to say ‘the otaku business sells, so I’m going to set up a business that sells otaku-related merchandise’. In order to succeed you have to be passionate about it.”

Among those who have recognised Choo’s passion are leading game, figure and anime makers, who have since invested in his “Mirai Gaia”, a proprietary online platform that enables clients to easily manage their e-commerce-enabled sites.

He was also invited last year to speak at Anime Expo 2010 in the US and the Ministry of Economy, Trade and Industry’s “Cool Japan!” initiative, which aims to promote “cultural industries” such as design, animation, film and fashion overseas.

dannychoo.com attracts 20 million page views per month “My parents had difficulties making ends meet and worked all hours,” says Choo, whose father, Jimmy, rose from humble beginnings to become one of the world’s best known shoe makers. “So I was brought up in the homes of people of a variety of ethnic backgrounds. It wasn’t a fun time. I didn’t have too many friends at school, I was bullied repeatedly. I was completely lost as regards to what I wanted to do.”

Then, in his late teens, he discovered Japan, first through a game console, and then through Japanese magazines, manga and music borrowed from the Japan Centre (a London shop selling a wide variety of Japanese goods), as well as videos of Japanese TV programmes purchased from a “dodgy” video rental shop.

He subsequently immersed himself in Japanese subculture and language. He memorised 50 kanji a day using homemade charts and worked at a Japanese restaurant to practice his conversational skills.

“The key word this year is kaigai (overseas), as this is the year when anime companies, and so on, will be trying to reach out overseas,” he says.

“Recently the focus of my business has shifted to sharing Japanese culture with the world by working with clients to help them disseminate information on their products and services overseas. Albeit unintentionally, I think the company is well-positioned [to participate in this emphasis shift]”.

One thing that remains unchanged is Choo’s unwavering belief in what he does, despite the hurdles that are occasionally erected by online “trolls” that he refers to as his “haters”.

“If you give me calm seas and rough ones I’ll choose the rough seas any day. As I go through the rough seas I’ll encounter all the things that will make my boat stronger. Haters are necessary to help us improve ourselves and make us more determined to succeed.”

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Refine + improve The EBC is a key player in the Japanese trade and investment policy arena with a core mission to promote an impediment-free business and investment environment and make it cheaper and easier for companies to operate.

To join the EBC visit

www.ebc-jp.com For more information please contact the EBC Secretariat.

Alison Murray, EBC Executive Director.

Tel: 03-3263-6222. E-mail: ebc@gol.com

Hunt Bigger Business Opportunities! www.mammothhunters.biz

Call in the Mammoth Hunters Global Strategy Development Experts Extraordinary off-site Meetings Inspire Mind Set Change

G reen B iz

Gone fishin’ (sustainably) Text Christopher S Thomas

A

wareness is rising among European consumers about the sustainability of natural resources, especially fish stocks, which have been in alarming decline recently. That is putting pressure on supermarkets to prove their eco-cred on their shelves.

The Tosakatsuo Suisan pole-and-line skipjack tuna fishery in Tosa, Kochi prefecture, is benefiting from this awareness, and has recently been certified as a sustainable fishery by the Londonbased Marine Stewardship Council (MSC).

Tosa’s skipjack fishery has a long tradition of offshore pole-and-line fishing.

A more selective fishing method than, for example, using trawl nets, it takes only fish of a certain size and minimises so-called “by-catch”, non-target fish caught inadvertently.

The resulting catch is smaller, but the fish are bigger and arrive at market with less damage so they command higher prices. The method is also much better for the long-term sustainability of fisheries since it leaves smaller fish to breed and be caught another day.

Products bearing the MSC stamp command a premium in the

marketplace, especially in the supermarkets of Europe. In Germany, for example, 20% of fish sold is MSCcertified. In the United Kingdom, major supermarket chains Sainsbury and Tesco have decided to sell only MSC-certified fish. Asian retailers have been slower to adopt the scheme, but Japanese supermarket chain Aeon is actively promoting MSC products and 5% of its fish carry the label.

Tosakatsuo Suisan is the first fishery in Japan to receive MSC certification.

Others are soon to follow, including the entire Hokkaido scallop fishery, which has been assessed and expects to receive its certification in April.

MSC’s assessments are rigorous and include recurring checks on processing and shipment to ensure traceability.

“Shippers have to separate the MSCcertified and uncertified boxes, for example,” explains Reiko Omoto, fisheries manager Japan at the organisation’s office in Tokyo. “This ensures that the fish are not mixed up and only the certified fish get the stamp.”

The certification brings societal benefits too. Higher fish prices mean the business of fishing is more lucrative and financially sustainable, so young people in Tosa are more inclined to stay and become fishermen rather than

Asian retailers have been slower to adopt the scheme, but Japanese supermarket chain Aeon is actively promoting MSC products and 5% of its fish carry the label move away in search of a better life.

MSC certification requires a lot of process improvements which, in the long term, could benefit fisheries. But it remains to be seen if the scheme can have an impact on the decline in stocks around the world. Fishermen range far out to sea for weeks at a time, depending on the season. Fish themselves have a way of ignoring national boundaries.

But it’s a start. “The main objective of the MSC’s activities is sustainability,” Omoto says. “This effort reduces catches in the short term, but it can safeguard fish stocks, and livelihoods, into the future.”

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Who’s Who

Education in Japan

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chools just aren’t the same.

There are no more peanut butter sandwiches due to allergies. The teacher no longer stands at the blackboard, and students no longer sit in rows of desks quietly scribbling away in their three-holed binders. Instead, school cafeterias appear more like food courts. The teacher is seen moving about the room and quietly talking to students who are arranged in collaborative groups – using iPads, laptops or mobile phones.

Not since the printing press have schools been challenged with such dramatic change. We now teach the three “Cs”: communication, collaboration and creativity. The classroom is now literally the world. Online databases and resources are our textbooks. Students can collaborate on Facebook, do video conferencing on Skype, learn how to do math on YouTube, and hear yesterday’s class notes on a podcast. Students can

write or make a film for a worldwide audience. If the school cannot offer a course, students can go online. Teachers have become a coach or facilitator who helps students analyze information, synthesize it, and use it to solve problems.

All of this is not happening at every school. But either it will, or the school will face becoming irrelevant. In designing and programming robotics to perform specific tasks, for example, students are engaged in collaboration – working in teams to find creative solutions. In competitions like VEX, students are learning the power of creative thinking, the importance of working in teams and the habit of critical thinking.

In the new world of education, students are active in their own learning and are enabled to construct their own knowledge and skills using technology as a tool. This is the new imperative for change and innovation in what

Who’s Who // Education

Technology, robotics, and the 21st century

Ed Ladd Head of School The American School in Japan

we teach, how we teach, and how we access student learning. There has never been a more exciting time to be an educator.

The best international schools

W

hat is an “international school”? Institutions exist on every continent and in almost every country that include these words in their name. Many have existed for decades. Some are internationally famous.

Many boast presidents and prime ministers among their alumni. Their numbers and popularity are growing and their graduates are welcomed at the best universities.

“International schools” certainly exist.

Indeed, many exist in Japan. One recent publication lists over 100 such schools in Japan.

But there lies the problem. An “international school” is whatever its owner, founder or governing board wishes it to be – nothing more, nothing less. There is no copyright on the label. There are no standards that need to be met in order to “qualify” for the right to associate a school with the hundreds that have earned their excellent reputations

over decades. “International school” is a catchall term, and often not a very helpful one.

So, in recognition of this, the best international schools invite external validation of their practices and standards. The concept of “accreditation” originated in the US, but it has been embraced by the international school community. Few credible international schools today are not accredited by one of the major agencies such as WASC, NEASC or CIS. Similarly, regional associations have emerged whose functions include quality assurance of member schools. The Japan Council of International Schools (JCIS) was founded in 1972, and its members include the country’s oldest and largest international schools.

Lastly, many international schools offer recognised national or provincial curriculums or international curriculums and examinations such as IB, AP, IPC and IGCSE. Authorisation to offer

Peter MacKenzie Principal Hiroshima International School

these is a further assurance of quality.

International schools in Japan are as diverse as the students who attend them. But what unites the best of them is adherence to global standards and benchmarks.

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Who’s Who // Education The American School in Japan Address Tel Fax Email Website Grades Co-ed Uniform Curriculum/diploma:

1-1-1 Nomizu, Chofu-shi, Tokyo 182-0031 0422-34-5300 0422-34-5303 info@asij.ac.jp http://community.asij.ac.jp pre-K-12 Yes No American-style college preparatory curriculum ASIJ-sponsored school bus system to main Transportation campus; 150 available bus stops with morning, afternoon and late bus routes Late Aug-mid June School year Serving students from over 40 countries, The American School in Japan has offered a coeducational, international college preparatory program since 1902. Operating on campuses in Roppongi and Chofu, ASIJ enrolls students from age three through high school. Internationally recognized Advanced Placement (AP) high school courses provide diverse learning opportunities that open the gateway to higher education at top-tier universities in the United States, Canada, the United Kingdom, Europe, Australia and Japan. An inclusive program of over 100 K-12 co-curricular activities complements classroom learning and includes many service opportunities. The main Chofu campus features excellent facilities including two athletics fields, three libraries, three gymnasiums, indoor pool, and state-of-the-art performing-arts wing featuring a 420-seat theater. Over 150 highly qualified faculty members provide a challenging academic experience designed to “develop compassionate, inquisitive learners prepared for global responsibility.” Over 60% of the faculty hold advanced degrees and average over 20 years of teaching experience each.

Aoba Japan International School Address

Suginami Campus: 2-10-7 Miyamae, Suginami-ku 168-0081; Meguro Campus: 2-10-34 Aobadai, Meguro-ku 153-0042 Suginami: 03-3335-6620; Meguro: 03-3461-1442 Tel Suginami: 03-3332-6930; Meguro: 03-3463-9873 Fax enquiries@aobajapan.jp Email aobajapan.jp Website 300 Number of Students pre-K - 12 Grades Yes Co-ed Yes Uniform Curriculum/diploma: International School bus, train Transportation August - June School year A-JIS is a pre-kindergarten through grade 12, coeducational school for internationally minded families residing in Tokyo. We welcome and respect families of all nationalities and religions. We aim to provide learning opportunities that appropriately challenge every student, allowing them to happily learn in a safe and caring environment. Our faculty endeavours to utilise best pedagogical practices based on current research to provide students with a variety of opportunities for success. All subjects are taught in English, except for Japanese-language classes. For students who have difficulty communicating in English, we have a strong support programme that has students communicating in English and ready for a mainstream classroom in only one or two years. In addition to the regular academic programme, A-JIS provides opportunities for students to join a number of fun teams, clubs and activities that allow students to learn new skills or develop existing ones.

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Christian Academy in Japan 1-2-14 Shinkawa-cho, Higashi Kurume-shi, Tokyo 203-0013 042-471-0022 Tel 042-476-2200 Fax admissions@caj.or.jp Email http://caj.or.jp Website 470 Number of Students K-12 Grades Yes Co-ed No Uniform Curriculum/diploma: American Western-Style Train Transportation August-June School year Founded in 1950, Christian Academy in Japan fosters a biblical worldview and provides a Western-style program in English for more than 450 students coming from a combination of missionary and business families representing over 25 countries.

Conveniently located in northwest Tokyo, CAJ offers a WASCaccredited, college preparatory education that is designed to prepare students for a life of obedient response to God and responsibility for His creation. Over 90% of CAJ graduates enroll in colleges and universities.

All students take core academics and electives (including art, choral and instrumental music, and computer), explore the richness of Japanese culture on field trips, and apply their learning through service projects. AP classes are available, as is a sports program, ESL support and assistance for children with special needs.

CAJ’s four-acre campus includes a 400-seat auditorium, gymnasium, and academic buildings housing a 25,000-volume library, resource room, science laboratories and computer centers.

EtonHouse International Preschool 9-2-16 Akasaka, Minato-ku, Tokyo 107-0052 Address 03-6804-3322 Tel 03-6804-3323 Fax enquiry@etonhouse.co.jp Email www.etonhouse.co.jp Website 25 Number of Students 18 months-6 years old Grades Yes Co-ed Yes Uniform Curriculum/diploma: Inquiry based (Reggio Emilia) Public transportation Transportation End August-Mid June School year With more than 3,000 students of 54 different nationalities at 35 schools in seven countries, it is fair to say The EtonHouse International Group has an advanced grasp of the term ”international school”. This same dynamic, multicultural environment is at its first Tokyo preschool, opened last August.

Located right next to Tokyo Midtown Akasaka and accommodating up to 100 students, the school follows EtonHouse’s ”Inquire, Think, Learn” curriculum. This is inspired by the work of Reggio Emilia preschools and infant toddler centres in Italy, which Newsweek describes as among the best in the world. Children at EtonHouse Tokyo are offered a holistic international education from nursery to kindergarten (18 months to six years old). All programs are taught in English by experienced, qualified early childhood educators of different nationalities, with a commitment to the very highest standards. A Chinese second-language program provides children grounding in the world’s most-spoken language.

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Who’s Who // Education

Address

Who’s Who // Education St. Mary’s International School Address Tel Fax Email Website Number of Students Grades

1-6-19 Seta, Setagaya-ku, Tokyo 158-8668 03-3709-3411 03-3707-1950 michelj@smis.ac.jp www.smis.ac.jp 930 RP (Pre-1st) – Gr. 12

Co-ed Uniform Curriculum/diploma:

All boys Yes American College-Preparatory Curriculum, International Baccalaureate School bus, public transportation Transportation August-June School year St. Mary’s International School has served Tokyo’s international community since 1954, accepting boys aged 5 to 18. The school has close to 950 boys from approximately 55 different countries.

This international student body, rich in cultural and religious diversity, contributes greatly to the unique educational experience offered. St. Mary’s follows a US curriculum and provides a college preparatory program including the International Baccalaureate for the 11th and 12th grades. The school also has an English as a Second Language program. In addition to the core programs, specialist teachers and facilities are available for art, physical education, aquatics, vocal and instrumental music, and information technology, as well as Japanese and several other languages.

St. Mary’s sports teams and fine arts programs are first-rate, winning local and international honors. Our academic and activity programs are specifically designed to meet the educational and developmental needs of boys.

Yokohama International School Address Tel Fax Email Website Number of Students Grades

258 Yamate-cho, Naka-ku, Yokohama 231-0862 045-622-0084 045-621-0379 admissions@yis.ac.jp www.yis.ac.jp 700 pre-K – 12

Yes Co-ed No Uniform Curriculum/diploma: International Baccalaureate Public transportation Transportation late August – mid-June School year Located in the historic Bluff District of Yokohama, just 35 minutes from central Tokyo by express train, Yokohama International School is an independent, not-for-profit, co-educational day school for children ages 3–18. Established in 1924 as a pioneer in international education, the school offers a rich cultural mix, exciting learning environment, and excellent academic programme. At the same time, we emphasise the social and emotional development of our students, and offer an extensive range of co- and extra-curricular activities. We have great students, dedicated faculty and staff, and supportive parents and alumni. A genuinely friendly atmosphere and sense of community are YIS hallmarks. An IB World School, YIS is accredited by the Council of International Schools and New England Association of Schools and Colleges.

In an exciting new development beginning in the 2011-2012 school year, all students in grades 6 – 12 will be provided with a laptop computer as part of our Connected Learning Community initiative.

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he first school in Japan to include the word “international” in its name was founded in 1924.

However, schools offering an education in English and serving members of the expatriate community in Japan have existed since 1872, and four current JCIS member schools can trace their origins to before the First World War. Many more were founded in the 1950s and 1960s, and it was in October 1965 when representatives of such schools met formally for the first time to discuss mutual matters of administration and curriculum. The value of such meetings was immediately apparent, and schools started meeting on a regular basis.

On January 12, 1972, a number of schools met and founded the Japan Council of Overseas Schools (JCOS). It was originally decided that membership would be based on schools being in EARCOS, the East Asia Regional Council of Overseas Schools, and that school heads would meet regularly to exchange information and discuss matters of mutual interest. In 1982 a constitution was adopted that opened membership to schools offering an English-based curriculum, irrespective of membership in EARCOS. In 1987, the name of the organisation was changed to the Japan Council of International Schools (JCIS), following the lead of the European Council of International Schools (ECIS).

Schools applying for membership to JCIS must meet a number of important criteria including stability, continuity, accreditation, professionalism, and an explicit commitment to internationalism. Also, education must be provided in English.

Beyond that, however, there are no requirements concerning curriculum, ethos or ownership. Some schools offer programmes of the International Baccalaureate. Others offer an education rooted to a greater or lesser degree in a national curriculum. Some schools offer a full “kindergarten to grade 12” education while others specialise in certain age groups.

Some are faith-based while others are strictly secular. The smallest JCIS member school has fewer than 100 students and the largest has more than 1,600.

Collectively, our schools currently enrol just short of 10,000 students from 109 countries. About half of the member schools are located in Tokyo or Yokohama. The others are spread throughout the country from Fukuoka in the west to Sapporo in the north.

The heads of member schools meet twice a year – usually in September and April. Meetings are held at member schools: once a year in the Kanto region and once elsewhere in Japan.

A President (Chair), Vice President, Secretary and Treasurer are elected by, and from among, the heads of member schools.

On a day-to-day basis, heads of JCIS schools communicate with each other regarding matters of common interest such as changes in employment legislation, appropriate precautions to take against pandemics (such as bird flu or swine flu), experience with service providers (good and bad), and so on.

Opportunities are also taken to share the cost of visiting speakers or performers with neighbouring schools, to coordinate professional development initiatives, to bring together specialist staff, and to support schools introducing new curriculums or educational programmes.

JCIS is a collegial and collaborative organisation that exists for the betterment of all international schools in Japan to the benefit of the parents who choose them and the children who attend them.

Peter MacKenzie President, Japan Council of International Schools www.jcis.jp Principal, Hiroshima International School www.hiroshima-is.ac.jp

Japan Council of International Schools Links to the member schools may be found at www.jcis.jp

American School in Japan

Kyoto International School

St. Mary’s International School

Aoba-Japan International School

Marist Brothers International School

Saint Maur International School

British School in Tokyo

Montessori School of Tokyo

St. Michael’s International School

The Canadian Academy

Nagoya International School

Tohoku International School

Christian Academy in Japan

New International School

Tokyo International School

Fukuoka International School

Nishimachi International School

Tsukuba International School

Hiroshima International School

Osaka International School

Yokohama International School

Hokkaido International School

Osaka YMCA International School

International School of the Sacred Heart

Seisen International School

March 2011

45

Who’s Who // Education

The Japan Council of International Schools

ASIJ:learning

ADVERTORIAL

the future of

The American School in Japan’s Vision for Teaching and Technology Robotics

“It’s hard to define 21st century learning without talking about technology, and the robotics program at ASIJ is a prime example of that. If you look at what students involved in robotics are doing, they work together collaboratively, address problems that do not have definitive answers, have to be creative in inventing solutions, and have to test those solutions against other solutions. That process captures a lot of what 21st century learning is about,” says Head of School, Ed Ladd.

ASIJ prepares all students to meet the challenges of a dynamic global society in which they collaborate, communicate, create and innovate through ubiquitous access to people, information and ideas. It is our aspiration to make technology an integrated experience for students, rather than a periodic event, by bringing technology into the core of the learning process and the learning space. In achieving this goal we understand that while technology can change learning, it is the teacher who truly improves it. Technology will have little impact for students unless used effectively.

We believe that a technology-rich environment enables teachers to design work that emphasizes 21st century learning. Students will become empowered collaborators and communicators, seekers and consumers of information, and creators of knowledge and media-rich products.

They will work on projects requiring higherlevel thinking, and critical and creative decision-making and problem-solving.

This year a 1:1 laptop program was launched to great success in our middle school and, following pilot programs in the high school and grade 5, will also go 1:1 next school year. “Focused exclusively on enhancing our students’ learning and providing them with 21st century competencies and expertise in collaboration, critical thinking, complex problem solving

and multimedia communication, our laptop program gives our students–and their teachers–continuous access to an information and creation tool for learning,” says Dr Scott Adams, Middle School Principal.

Whether it is using a Wiki or shared Google Doc to collaborate on a project, creating a piece of music in the digital composition class, interacting with other students via email and blogs, or using online databases, technology supports our students and opens up new worlds to them. Students and faculty use our Blackboard site as a “virtual classroom” that provides access to resources, assignments and collaborative learning tools. Accessing all of this through our campus-wide double 100MB wireless network, students and teachers have the freedom to work wherever or whenever they need.

“We believe that being in charge of a laptop computer helps build each student’s sense of responsibility, and fosters a greater sense of independence in them. The key word for education in the near future is collaboration. In America and Europe, it has been stressed that a shift in education is needed from one-way lecturing of students to a more interactive and collaborative one. Introducing the 1:1 laptop program, including the utilization of web-based applications, has brought about a new style of learning at ASIJ,” says Eugene Witt, Director of Information Technology.

Since hosting and winning the VEX Robotics Competition in 2009, ASIJ’s robotics program has continued to enthuse the community. High school students built new robots, wrote programs and competed in the VEX Competition again this year, qualifying for the World Championship for the second year running. Students also had the opportunity to work with a visiting scholar on marine robots in preparation for an underwater robotics competition this spring.

Pre-K through grade 12. Accredited by WASC. For complete admissions information please visit: <http://community.asij.ac.jp> or call 0422-34-5300 ext. 720

Evergreen Outdoor Center 4377 Hokujo, Hakuba-mura, Nagano-ken 399-9301 0261-72-5150 Tel 0261-72-8056 Fax tours@evergreen-outdoors Email www.evergreen-hakuba.com Website Up to 200 Number of Students Curriculum/Diploma Outdoor Education, Team Building, Mountain Safety Canadian Avalanche Skills Training 1 & 2 Level of Degree(s) Year-round School year None required Prerequisites Part-time, weekend or multi-day courses Participation Hakuba-mura, Northern Japan Alps Campus Location(s) Weekend or multi-day courses Program Length Depends on course/program Tuition: The Evergreen Outdoor Center has been operating guided ecology tours, mountain safety courses and outdoor education in the Hakuba area since 2000. Apart from regular family tours, Evergreen has customised programs geared for schools, groups and corporations. Students can learn first-hand about the flora, fauna, local history and the unique environment of Japan’s Northern Alps. With a variety of outdoor training programmes that have real-world applications, your group can work together to facilitate communication and cooperation that are essential for any organisation’s success. Whether your objective is to build team spirit in the workplace or allow your colleagues to bond in a fun and challenging environment, Evergreen’s team-building programmes are created with your goals in mind.

Their mission is to allow for the growth and development of the human spirit through personal interaction with the natural environment, personal challenge and teamwork, and through always accommodating individual needs while maintaining a high standard of safety.

FranklinCovey Japan Co., Ltd. Address Tel Fax Email Website Curriculum/Diploma

Seikaikan Bldg. 7F, Sanbancho 5-7, Chiyoda-ku, Tokyo 102-0075 03-3264-7417 03-3237-7722 training@franklincovey.co.jp www.franklincovey.co.jp Training and seminars

Are you engaged in your work? Are your people engaged? Does everyone know the organisation’s most important goals and their individual roles? Do you and your organization execute on your highest priorities? Do you achieve great results?

At FranklinCovey our mission is to enable greatness in people and organisations everywhere. We can help you and your organisation achieve greatness through transformational leadership programmes, individual effectiveness programmes, assessment tools, and coaching as we have with over three quarters of the Global Fortune 500 companies.

Released in 1989, “The 7 habits of Highly Effective People”, has sold over 1.4 million copies in Japan, and over 20 million worldwide.

After more than 20 years it is still in the top 100 of all books and top 10 business books on Amazon in the UK, US, and Japan. Every year in Japan, more than 25,000 people attend our flagship “7 Habits of Highly Effective People” programme and build greater effectiveness in their careers and personal lives.

FrankinCovey has been named one of the world’s top 20 leadership and sales training companies by TrainingIndustry.com.

We can offer any number of world class programmes or a customized solution tailored to your needs.

March 2011

47

Who’s Who // Corporate Training

Address

Who’s Who // Education

Leveraging emerging Asia for global advantage

T

he International University of Japan (IUJ) was founded in 1982 with strong support from Japan’s four major business organisations.

IUJ offers seven graduate degrees: MAs in International Development, International Relations, International Peace Studies, Public Management, and Economics, a two-year MBA, and a oneyear Masters of E-Business Management.

IUJ’s MBA programme was launched more than 20 years ago in collaboration with the Amos Tuck School of Business Administration, becoming the first US-style business school in Japan. With the aim of developing global business leaders for the future, our programmes are built upon an English-based curriculum that focuses on the comparative analysis of global issues from a JapanAsia perspective, and adheres to the high standards set for a global MBA education.

Over the past eight years, IUJ’s GSIM (Graduate School of International

Management) has ranked among the top 100 business schools in the world, according to the Economist Intelligence Unit.

In 2010 IUJ was rated 83rd in the world, 10th in Asia, and number one in Japan.

IUJ hosts more than 300 students from about 50 countries on campus each year. The faculty all hold PhDs from top schools in the United States and around the region. With our partners, IUJ aims to provide the most valuable business education for those individuals and companies who are focused on leveraging emerging Asia for global advantage.

In pursuit of this goal, IUJ officially announced its new “Global Partnership Program” with 35 major corporations in Japan. These partnerships with IUJ focus on educating tomorrow’s leaders through bringing company-sponsored employees into IUJ’s programmes in company-focused executive programs and networking events.

Philip Sugai Dean and Professor of Marketing, Graduate School of International Management, International University of Japan

These partnerships include creating custom-made training programmes and recruiting internationally-minded talent to leverage the growing importance of the Asian market for the partners’ global success.

IUJ is linking Japan to the world.

MBA pointers

O

ver the past few years in Japan, all kinds of institutions – universities, private colleges and others – started offering MBA programmes. Students considering an MBA degree should be looking out for a number of factors that define a high-quality program, one providing experience that will last a lifetime.

The MBA is one of the most soughtafter degrees for individuals developing their management potential. From an academic perspective, a Master of Business Administration is an upperlevel, graduate degree offered by the management faculty or business school of a university. A quality MBA aims to develop a well-rounded manager capable of working with business professionals from all parts of an organisation and from around the world.

MBA programs worldwide are almost entirely taught in English, which has become the lingua franca for business

48

March 2011

communication and study. The vocabulary that is taught and applied is the same all over the world. Business associates from different countries, different companies, and different industries can understand what others are talking about.

This doesn’t mean that management itself is homogenised around the world.

Rather, people are able to talk with each other clearly about their different challenges and insights using a business terminology that everyone can follow.

A good MBA program also will work on developing a person’s ability to function within a multinational, multicultural team. Such capability is sometimes referred to as ‘soft skills’, which are the hardest to develop because they require changes in behaviour and attitude that can be very deeply ingrained.

Finally, MBA candidates should seek a programme that fits their lifestyle, their needs, and their ability to manage risk. An extremely rewarding option

Philip O’Neill Director McGill MBA Japan Program Desautels Faculty of Management of McGill University

is a weekend program, which allows students to continue working while advancing themselves with their MBA studies.

Global MBA – ESSEC Business School Avenue Bernard Hirsch, B.P. 50105, 95021 Cergy-Pontoise Cedex, France +33 (0)1-34-43-39-90 Tel +33 (0)1-34-43-36-35 Fax globalmba@essec.edu Email www.essec.edu/globalmba Website 40 Number of Students MBA Level of Degree(s) Last week of Sep, to the first 3 weeks of Sep School year Experiential learning in an emerging country GMAT, TOEFL/TOEIC, minimum 4 years of workPrerequisites ing experience Two campuses, Paris and Singapore; one field Campus Location(s) trip to Eastern Europe 1 year Program Length €45,000 (Early bird rate €35,000) Tuition: ESSEC Executive Education: ranked 10th world-wide (Financial Times, Dec 2010) The Global MBA is a highly selective programme for exceptional individuals who want to fast-track their career in an international environment. Offering much more than a typical MBA, the programme provides a unique composition of vigorous management theory instruction, interaction with cutting-edge business knowledge specialists and hands-on experiential learning – a winning combination that puts budding talent into real-world context.

Invaluable for a career in a rapidly changing, global context, we focus on sharpening critical thinking, fostering creativity and innovation, and nurturing personal leadership. Students are encouraged to think independently, develop their own ideas and defend their decisions. The Global MBA trains future managers in the processes and methods that will boost their creativity and innovative management skills and that of the teams in which they work Other MBAs: MBA in International Luxury Brand Management

MBA in Hospitality Management

Executive MBA

International University of Japan (IUJ) Address Tel Fax Email Website Number of Students Curriculum/Diploma

777 Kokusai-cho, Minami Uonuma-shi, Niigata 949-7277 025-779-1104 025-779-1180 info@iuj.ac.jp gsim.iuj.ac.jp/eb 150 International - 29

Level of Degree(s) School year Prerequisites Program Length

Master’s September-August Bachelor’s degree 21 months for MBA Program, 12 months for E-Business Management Program ¥1,900,000/year for MBA, ¥2,200,000 for E-Biz Tuition: The Graduate School of International Management (GSIM) at the International University of Japan (IUJ) is dedicated to developing tomorrow’s global leaders, and offers a full-time MBA Program and a one-year Master’s Program in E-Business Management. We provide students with the incomparable opportunity to study and ultimately solve the challenges of actual global, national and local businesses.

We foster a multinational, multicultural team-based environment giving students the opportunity to work closely with peers who possess a wide array of skills, perspectives and beliefs, using English only in the classrooms. In addition, students are partnered with researchers and practitioners dedicated to exploring and establishing new and innovative ideas in their respective fields. IUJ is committed to empowering all members of the GSIM community with the functional knowledge, courage, and fundamental skills needed to be effective and socially responsible leaders.

March 2011

49

Who’s Who // Education

Address

Who’s Who // Education Manchester Business School MBA Address

Wilson House 6F, 19-27 Wyndham Street, Central, Hong Kong +852-2588-5013 Tel + 852-2588-5093 Fax mba@mbs.edu.hk Email www.mbs.ac.uk/global Website 6,000 Number of Students Curriculum/Diploma MBA Master’s Level of Degree(s) July 2011 intake School year First degree + 3 years’ experience Prerequisites Part-time Participation Hong Kong, Singapore, Shanghai, Miami, Campus Location(s) Manchester, Dubai, Brazil 2.5-3 years Program Length £21,000-22,000 (payable in five or six Tuition: instalments) Manchester Business School MBA is one of the top 4 in the UK in the FT (The Financial Times) 2011 MBA rankings, and the university nurtures 25 Nobel Prize winners.

MBS East Asia Centre, located in Hong Kong since 1992, organises the Global MBA programme for students from Hong Kong, Japan, South Korea and southern China. Currently, 25% of the students are working professionals in Japan travelling to Hong Kong to complete their UK part-time MBA degree.

• Quality – Top 20% worldwide received triple accreditation by AMBA, EQUIS and AACSB International • Flexible –Programmes to suit your lifestyle and career demands.

Delivered using a blend of self-study and intensive face-to-face workshops (3-4 days) at different international centres • Great Network – Global online community of over 6,000 students and 30,000 alumni • Portable & International – Worldwide support from centres in the US, Singapore, Hong Kong, Shanghai, UAE, Brazil and Manchester

McGill MBA Japan Program: Desautels Faculty of Management of McGill University Address

Hilton Tokyo, Room 2001, 6-6-2 Nishi-Shinjuku, Shinjuku-ku, Tokyo 160-0023 03-3342-3430 Tel 03-3342-3431 Fax inquiry@mcgillmbajapan.com Email www.mcgill.ca/desautels/mbajapan Website Curriculum/Diploma Master of Business Administration (MBA), PostMBA Certificate, Executive Education Master’s Level of Degree(s) April-March School year Bachelor’s Degree, TOEFL, GMAT, 5-years’ work Prerequisites experience Weekend Participation Hilton Tokyo; Montreal, Quebec, Canada Campus Location(s) 18 months Program Length ¥4.8 million Tuition: TRADITIONS OF EXCELLENCE For almost 200 years, McGill University has distinguished itself as one of the world’s great public universities, renowned for outstanding students, professors and alumni; for achievement in teaching and research; and for its distinctive international character and reach. The McGill MBA Japan programme brings those rich traditions of excellence, in addition to the over 100 years of business education and management expertise, to Tokyo in a unique format that meets the needs of today’s working business professionals.

New Format The 51-credit McGill MBA Japan programme is delivered at the Hilton Tokyo in Nishi-Shinjuku to the same standards as the full-time MBA programme at McGill’s Montreal Campus by the Desautels Faculty of Management. The weekend format here allows you to work full-time and immediately convert new knowledge directly into creative solutions to help reinvent your work, your ideas and your future. You can complete the programme in as little as 18 months.

50

March 2011

Sophia University (Jochi-Daigaku 上智大学) Address Tel Fax Email Website Number of Students Curriculum/Diploma

7-1 Kioi-cho, Chiyoda-ku, Tokyo 102-8554 03-3238-4018 (admissions) 03-3238-3262(admissions) exter-s@sophia.ac.jp www.sophia.ac.jp 12,690 Japanese

BA, MA, PhD April-July, Sept-Feb High school graduate diploma, Bachelor’s degree, TOEFL, TOEIC, IELTS, etc. (depends on the program) Full-time/part-time Participation Central Tokyo (Yotsuya) Campus Location(s) BA 4 years, MA 2 years, PhD. 3 years Program Length Approx. ¥1,200,000-1,650,000/year for BA Tuition: program (depends on the program) Founded in 1913, Sophia University is one of the pioneers in Japanese international education. Some 12,000 students study in eight faculties and 10 graduate programs.

The undergraduate program at the Faculty of Liberal Arts and MA/ PhD. programs in Global Studies are full-degree offerings taught in English, and accredited by the Japanese Ministry of Education.

New English-medium MA/PhD programs in the Graduate School of Global Environmental Studies start in September 2011, and two new undergraduate-degree English programs in the Faculty of Science and Technology commence in 2012.

Sophia is well known for its international atmosphere, excellent language programs and outstanding research — preparing students for a wide-range of careers at international and Japanese firms and organisations. In preparing students for today’s rapidly changing world, Sophia educates “the whole person”, offering opportunities for students to grow intellectually and personally as “Men and Women for Others, with Others”.

Get

COMMITTEES

> Aeronautics

& Space

> Airlines > Animal > Asset

involved

> Legal

Health

Management

> Automobiles > Automotive

Components

> Banking > Business

Aviation

> Business

Continuity Management

> Construction

Some 300 of the over 2,500 affiliated local European companies and individuals participate directly in one or more of the EBC’s 30 industry committees covering a wide variety of economic sectors.

Technology

> Food

Resources

> Information

> Logistics

& Freight

> Materials > Medical

Diagnostics

> Medical

Equipment

> Patents,

Trademarks & Licences

> Railways

& Wholesale

> Sustainable

> Defence

> Human

Services

> Liquor

> Retail

> Cosmetics > Environmental

> Insurance

Communication Technology

Development

> Tax > Telecommunications

Carriers

> Telecommunications

Equipment

To join the EBC visit www.ebc-jp.com For more information please contact the EBC Secretariat.

Alison Murray, EBC Executive Director. Tel: 03-3263-6222. E-mail: ebc@gol.com

Who’s Who // Education

Level of Degree(s) School year Prerequisites

SHOP WINDOW

Shopping centres account for 20% of total retail sales in Japan

2,750

Sales 짜billion

3,000

50 2,688

40 30

2,625

20 2,563 10

100

52

09

08

20

07

20

06

20

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3 SC sales have fallen since 2006 on a like-for-like basis, after several years of growth, In 2009 they fell 6.8% overall compared to 2.1% for the top 100 SCs. In 2010 the decline slowed to 2% for all SCs, and sales improved to positive levels in October and November.

3 The best results are coming from outlet malls such as those of Chelsea Japan and Mitsui, and premium massmarket SCs like Lumine and

20

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JapanConsuming

March 2011

0

New shopping centres

3 2007 was the peak of a golden age for shopping centre (SC) development, with nearly 100 new SCs, a record.

3 The bubble burst thanks to lack of finance, stricter laws on large stores, and lower demand. In 2010 just 54 SCs opened.

3 The number of SCs continues to rise, reaching 3,059 in 2010 with 147,000 tenants and 43 million square meters of sales space.

JC

20

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20

04

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03

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02

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01

0

2,500 20

2,500

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60

2,750 New shopping centres

Total shopping centres

3,250

Sales Area (million m2)

LaLaport. Well-managed SCs like LAZONA in Kawasaki are highly proactive about pulling in customers through concerts, events, promotions and new tenants.

3 Development has peaked, but SCs remain popular and will continue to take market share from other retail locations, even more so as department stores convert some of their buildings to shopping centres.

JapanConsuming is the leading provider of intelligence on consumer and retail markets in Japan. The monthly report provides news about, and in depth analysis of, current trends. For more information, please see www.japanconsuming.com or contact Sally Bedown at subs@japanconsuming.com

events

Upcoming events > Austrian Business Council www.abc-jpn.org

European chambers joint luncheon* – The new EU Ambassador to Japan 24 March, Thursday, 12.00-14.00 (doors open at 11:30)

Speaker: Hans Dietmar Schweisgut, EU Ambassador to Japan, EU Delegation Venue: The Westin Tokyo Fee: ¥ 6,500 (members), ¥ 7,500 (non-members) Contact: your respective chamber representative

> German Chamber of Commerce and Industry in Japan www.japan.ahk.de/en/

Strategic business process management: How to implement strategies 15 March, Tuesday, 18:30-21:00

Speaker: Wolfgang Bierer, ENDEAVOR SBC Co., Ltd. Venue: GCCIJ, Hanzomon or Kudanshita Stn. Fee: ¥5,250 (members), ¥8,400 (non-members) Contact: events@dihkj.or.jp

* Austrian (main organiser), Belgian-Luxembourg, Danish, Finnish, French, German, Italian, Netherlands, Polish and Swiss chambers. (Seats limited with preference for members of organising chambers).

ABCs of buying a company in Japan: identifying, approaching and acquiring – a practical guide > British Chamber of Commerce in Japan for strategic investments in Japan www.bccjapan.com

Retirement luncheon: The readiness is all ...

16 March, Wednesday, 12:00-14:00

Speaker: Ian de Stains, executive director, BCCJ Venue: ANA InterContinental Tokyo B1F, Prominence Room Fee: ¥6,000 (members and non-members) Contact: info@bccjapan.com

Another future for Asia – Giving women a chance 31 March, Thursday, 12:00-14:00

Speaker: Cherie Blair, patron, Asian University for Women Venue: Hilton Tokyo 4F, Kiku Room Fee: ¥7,000 (members and non-members) Contact: info@bccjapan.com

> Finnish Chamber of Commerce in Japan www.fcc.or.jp/

Stora Enso cup, Sweden-Finland golf challenge 22 April, Friday, 09:00-17:00

Venue: to be confirmed Fee: ¥18,000 Contact: fccj@gol.com

17 March, Thursday, 18:30-21:00

Speakers: Eberhard Hafermalz, ARQIS Foreign Law Office; Kohei Nakagawa, TMI Associates; Jeff Acton, Business Development Asia KK Venue: GCCIJ, Hanzomon or Kudanshita Stn. Fee: ¥5,250 (members), ¥8,400 (non-members) Contact: events@dihkj.or.jp

> Italian Chamber of Commerce in Japan www.iccj.or.jp

L’Italia delle regioni – fourth Sardinia seminar: dolce & dessert wine 12 March, Saturday, 16:30-18:30

Speaker: Horikawa Eiro, owner and chef Venue: Trattoria Sarda Rena Bianca, Ebisu Fee: ¥3,000 (members), ¥4,000 (non-members Contact: iccj@iccj.or.jp

L’Italia delle regioni – first Friuli seminar: culture, antipasto, salami & wine 9 April, Saturday, 16:30-18:30

Speaker: Paolo Colonello, chef Venue: Trattoria Verde Uno, Sangenjaya Fee: ¥3,000 (members), ¥4,000 (non-members Contact: iccj@iccj.or.jp

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Speaker: Danny Risberg, president, Philips Japan Venue: Philips Bldg., Shinagawa Fee: no charge (drinks during networking at own expense) Contact: nccj@nccj.jp

> Swiss Chamber of Commerce and Industry in Japan www.sccij.jp

March luncheon: About the Zurich airport project 15 March, Tuesday, 12:00 to 14:00

Speaker: Riken Yamamoto, architect, Riken Yamamoto & Fieldshop Venue: Residence of the Swiss Embassy Fee: ¥8,000 Contact: info@sccij.jp

Evening Event 8 April, Friday, 18:30-20:30

> Netherlands Chamber of Commerce in Japan http://nccj.jp

Sector briefing & drinks

Speaker: Swiss International Air Lines Venue: Happo-en, Shirokanedai Station Fee: no cover charge Contact: info@sccij.jp

7 April, Thursday, 17:30-18:30 (followed by drinks)

Compiled by David Umeda March 2011

53

Nico Roehreke The Competitive Edge

Text Justin McCurry Photo Tony mcnicol

T

he years Nico Roehreke spent lapping racing tracks at breakneck speed proved perfect preparation for a successful career in business.

But for the president of the Nicole Group of Companies, which imports and sells luxury European cars, automobile parts and road bicycles, life could have taken a very different turn had he followed his parents’ advice.

Roehreke holds a German passport but considers himself a citizen of Asia, the region in which he has spent by far the greatest part of his life.

His grandfather went to China at the turn of the 20th century to set up a trading conglomerate that was eventually taken over by the communist regime. “I am third-generation European in Asia; this really is my home,” says the svelte 58-year-old during an interview at his company’s headquarters in Kawasaki.

The son of a German diplomat, Roehreke was born in India, and spent time in the Philippines and Singapore before following his father to Japan in 1969. “When he was transferred to China, I decided to stay in Japan and, much to the horror of my parents, I told them I wanted to be a racing driver.”

His racing career began in 1974 and lasted until 1982, by which time he had accepted that, despite winning several Formula Two races in his BMW-engine car (his first victory at the famous Suzuka Circuit), he did not possess the “genius talent” needed to make the move up to Formula One.

E B C personality

“You have to be honest about your abilities, and I didn’t have the ability to become a Formula One racer. So at 30 I had to make the decision to continue as a racing driver with an unknown future, or to concentrate on running a business.”

His eight-year career as a driver helped him set up his business importing car parts for his erstwhile competitors.

“Japan was so closed at that time that [local companies] were running profit margins of 600%. Word soon spread that there was a foreigner who was importing parts at very reasonable prices. One thing led to another and, before I knew it, I was running a business.”

The company, originally called Nicole Racing Japan, was launched in 1977 to manage his racing activities and import parts.

Almost four decades later, a business that Roehreke and a secretary initially ran from his Tokyo apartment has grown into an empire spanning seven companies in 14 locations in Tokyo and Kanagawa prefecture. The Nicole Group now employs 230 people, with annual sales equivalent to about $230 million.

While the group’s flagship import is the BMW ALPINA, the most coveted member of the BMW range, it also acts as Japan dealer for Rolls-Royce Ghosts, Mini Coopers and high-end bicycles. Last year, Nicole sold 200 Alpinas in Japan, an extraordinary feat in the midst of an economic downturn.

“We have succeeded in growing a loyal customer base. A lot of our customers order a new model before they’ve driven or even seen the car. But they know what they’re going to get. A lot of work has gone into building that level of trust.”

A combination of European aggression and acceptance of Japanese business mores has made Nicole the top BMW agent in Japan for the past 15 years. “I do believe that the balance of the best Japanese elements and the best European elements is a tremendous strength.”

While the luxury car market isn’t recession-proof, Roehreke says it has remained relatively stable. In 2009, at the height of the global financial crisis, he began importing the new compact Rolls-Royce Ghost model.

“Although we are in this severe economic climate, the Rolls-Royce business has been doing relatively well. One of the reasons is that even in deflationary circumstances, people tend to go for things with a sustainable value, and Rolls-Royce is an obvious choice.

“There might be the status symbol involved, but our customers are really interested in the car itself. It is an incredibly powerful machine.”

Surrounded by expensive cars and wealthy clients, Roehreke brings himself back down to earth by simply glancing at a photograph in one corner of his office. The iconic image is of a woman wading across a swollen river with her children during the Vietnam War. “It shows the misery of the Vietnam War, and I put it in my office to remind myself to always keep my feet on the ground, to never become arrogant, and to realize that there are people who are fighting for their lives and their children’s lives.”

His office also has photographs of his wife and two daughters, and of him with visiting celebrities and VIPs, including the former Soviet president, Mikhail Gorbachev.

Four wheels, two wheels If Roehreke’s career in motor racing fed his entrepreneurial appetite, it was his love of cycling that led him to expand Nicole’s portfolio.

“My friend and I were avid bikers, and we found that most of the stores that were selling high-end bicycles offered service in no way commensurate with the price they were charging. Our strength is that we are able to take care of our bicycle customers regardless of their level of expertise.”

Roehreke makes regular appearances at cycling trips and other social activities Nicole organises for its customers.

He still cycles, though not as often as he would like. Among his favourite rides are the Noto peninsula and the bridges that link the islands of the Seto Inland Sea. “There’s this element of challenge in cycling that I’ve always loved.”

His decision to launch a racing career meant Roehreke had to pass up the opportunity to attend university – another cause of concern for his parents.

“I was able to start my business at a

In a nutshell Title: President, Nicole Group of Companies Time in Japan: 42 years Business career highlight: “Switching from motor racing to the commercial world” Business career regret: “Failure of a European high-end audio system business” Favourite saying: “Life is not a rehearsal” Favourite book: Lin Yutang’s “The Importance of Living” The secret of business success is: “Believe in people and in yourself” If you could own any vehicle what would it be? “A hydrogen-powered car” Do you like natto? “Yes, I eat it once a week”

Favourite place in Japan: “Suzuka racing circuit – where it all started” very young age, so I think that not going to university gave me a head start. I would say that the insecurity of not having gone to university has always been a great driver in my life. When I was younger I had this very strong urge to prove that I could perform. It was a wonderful motivator.”

While Roehreke takes his holidays seriously – he spends a month away every summer when he rarely checks his email – the competitive edge that made him a successful racing driver is ever-present.

“The most wonderful part about motor racing is that it’s totally unpredictable. You never know what’s going to happen. That teaches you to always be prepared and to be able to cope with anything that happens in business.

“You become honest with yourself. In motor racing there are moments when your brain is telling your foot to depress the accelerator, but something inside you is telling you to lift your foot. It’s saying, ‘I’m not going to let you die here.’

It’s a moment of truth in which you’re trying to override the system. That’s a good lesson for business.”

March 2011

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March 2011

Tokyo Marathon 2011 Photos and text Tony mcnicol

L ens F lair

A record 36,000 runners took part in the fifth Tokyo marathon, cheered on by 216,000 spectators and 10,000 volunteers. The course took them from the Tokyo Metropolitan Government office in Shinjuku, past the Imperial Palace, Shinagawa, Asakusaâ&#x20AC;&#x2122;s Sensoiji temple and the Tsukiji fish market, all the way to Tokyo Big Site in Odaiba.

After March 2011

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W ork P lace

Onno Jalink Representative Director, BRITA Japan BRITA Japan sells two kinds of filters and 12 jugs, including two designed specially for Japanese fridges. â&#x20AC;&#x153;We have over half the jug filter market.

About two million households in Japan are enjoying BRITA water,â&#x20AC;? says Jalink.

Photo Tony McNicol

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March 2011

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