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August 22, 2008

Executive personnel management- simple questions from an outsider?

→Japanese

I was interviewed by Nihon Keizai Shinbun for a column called "Airspace violation".  It is an interview report and aims to have a person present open questions about things other than his/her profession.   Although I had several themes in my mind, I decided to talk about personnel management of enterprises.  The article appeared in the morning edition page 5 on Aug. 4th, 2008, under the heading of " 'Tenures' are not appropriate for executives.  Decide according to their performance and actual results." The article is as follows. Gist of my remarks are in the quotation marks.

■ We understand that you have doubts about "Tenure" of business executives?
"I hear that there are many enterprises which have customs or byelaws that set presidents' tenure as 2 terms of 4 years or 3 terms of 6 years.  But does it make any sense?  I hardly think that the governance of Japanese enterprises so far was good enough just because they have a tenure system. "

■Current trend is to shorten the tenure of top managements of large industries. Along the trend, many enterprises are shortening the term of office of CEO from 2 conventional years to 1 year.
"If manager's term of office is set short, he/she won't consider the business on long term scales.  Suppose some problem occurs during the tenure.  I suspect that it will not be solved by he/her but will be transferred to their successor."  "Same things happen in governments as well as universities, the field where I come from.  As government officials are replaced one after another the problems go on passing to the successors.  Since tenure of deans and president of university is short, talent training cannot be planned from long term perspectives."

■On the other hand, there are adverse effects if the tenure is prolonged and also criticisms about "problems caused by aged people".
"For 'problems caused by aged people', you can simply set young presidents in their 40s.  Then even after serving for 10 years, his/her age will still be below 60.  There are some cases, like Sharp or Hotel Okura, which had presidents in their 40s.  However, in large industries in Japan, the number of young managers is still very small.  What is required of a leader is; vision, ability of conveying the vision to the other people, intellectual and physical strength, and strong faith.  Age is irrelevant.  Younger talents should be selected."  "Nevertheless, it doesn't mean that 'long term control' is always no good.  There are many founders of corporations in Japan, like Mr. Akio Morita of Sony, who demonstrated wonderful management skills for a long period of time.  There may be many employed managers who can achieve excellent results in their long term tenure."

■Problem is not the short or long length of tenure?
"The point is not to set tenure but to build a mechanism so that the ability and achievement of a manager is evaluated objectively and in case any problem arises, the mechanism must work to have him removed immediately.  But how many Japanese enterprises actually have such structure functioning? If a company can not have a person to retire till completion of his customary tenure we must say that governance does not exist."

■One more word, please.
Once you become a professor, you will be safe till retirement.  This is also strange.

■A word from the interviewer.
How should we select and evaluate the heads of management?  It is a very important issue connecting to the base of enterprise governance.  There are cases where external reporters or external directors participate in selection of the succeeding director but such advanced examples are yet very few.  How do Japanese managers answer to those simple questions about executives raised by Dr. Kurokawa? (Editing committee, Yoshiyuki Miyata)

I expect there will be various opinions, points regarding the contents of this article.  Although I spoke for a long time they had to summarize it in a little space.  Anyway, pushing theory of your own is useless in this era of global economy, especially if it is the world's second great economic nation.  It is a matter of credibility of a business, a nation.  In this information age, governance with transparency is the basis of company’s worth. Not limited to enterprise, everything is transparent from the world even if you tried to hide.  And here lies the challenges of "Flat age".

Some of the arguments about this article have appeared at Nikkei Net PLUS.  You are able to read them by registration (free).  What do you think?


August 01, 2008

Medical students from Asia: Cheers for young people and 3 speeches

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There is a gathering of medical students from Asia known as AMSC (Asian Medical Students Conference).  This conference is held annually, and I was invited for the last 3 years.  I enjoy this event every time.  I like to be a part of such conference of youth organizations since they are pillars of the future human resource.  This was the 29th year and the conference was held at Tokyo.  I talked in the closing ceremony.  I heared that about 400 students have participated.  The point of my speech was the tremendous change that had occurred in these 29 years and about the globalization era.  I also talked about on "3 speeches."

The 3 speeches were, the speech given by Steve Jobs at commencement ceremony of Stanford University in the year 2005 (I told the students that "I hope and look forward that this 1 week conference become a "dot" of your career."),  speech given by Bill Gates at commencement ceremony of Harvard University in 2007 (It was about recognition of and consciousness for "Inequality" in the world and society.) and the "Last Lecture" of Randy Pausch at Carnegie Mellon University (About the childhood "Dream."  Even if you face many problems, do not forget that you all had a "Dream" to become doctors.  Refer 1, 2 ).

You can have a look at these speeches on YouTube.  Each one of them is a wonderful speech.  The "Last Lecture" of Professor Pausch became a book and Japanese translation was published just a few days ago.

It must have been a lot of work for staff students who organized this conference.  It was really a wonderful conference.


May 26, 2008

Opening Keynote at the G8 Environment Ministers' meeting

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I was invited to deliver Opening Keynote to the G8 Environment Ministers' meeting in Kobe, May 24th.  What an honor and privilege!  But, then a headache.  I was told simultaneous translation to Japanese, English, French, Chinese and Spanish.  Thus, I decided to prepare my speech in English and deliver it in English.

When you listen to any speech through simultaneous translation, simply it is difficult and frustrating because translation is always, by its very process, a bit behind the actual speech, sometimes few words are obviously missing, thus you are not sure to what extent the translation is correct.  But of course unless you understand many languages almost perfectly, this process is unavoidable in international meetings.

Thus, I prepared my entire speech after a few editing and reading myself, I sent my text to translators assuring in a memo that I will read the text so that you just follow in the language you are supposed to translate.  No power-point slides, of course.

Photo 1 and 2  ambience of the conference site Dsc_0247g8kobe05240801_2

Dsc_0214g8kobe05240802 I felt really good after I finished my speech, when UK Minister Honorable Hilary Benn came to me at the podium and told me it was very well thought-out, constructed, and well delivered, and he was very impressed. Wow! such comments by a British political leader, a real native English speaker.  We chatted for a few minutes at the podium.

Thank you, Honorable Minister Kamoshita giving me this honor and privilege.  But three days must have been very hard for you all.

I left Kobe immediately and back to Tokyo to see Dr. Pachauri , Chair of IPCC, you know who he is.  We met in New Delhi this February.


May 20, 2008

G8 Dialogue at United Nations University

United Nations University(UNU) with its Institute for Advanced Studies(IAS) hosts a series of lectures "G8 Dialogue" in support of the role of Japan, that hosts 4th TICAD(Tokyo International Conference on African Development) in later this month in Yokohama and G8 Summit in Toyako, Hokkaido, early July.

I was invited to talk on Global Health and its excerpt is attached for your interest.  The lecture can be viewed on the web.


 Global Health: What is Necessary to Make it Possible?(PDF)


May 15, 2008

Global Financial Crisis. Lessons from Japan?

→Japanese

It is said more often than not, Japan is not clearly visible, particularly in last decade or so, in global scene be it domestic issues, and internationally and globally relevant issues.  Sometimes, messages may appear from government officials in some critical issues defending their own position when questioned by the foreign press, but such messages could be one-sided.  It is very important that more voices have to be expressed from independent parties and individuals, particularly opinions that may be against, but maybe more rational, prevailing views reported in Japan.  Such voices will provide better and balanced understanding of Japan.

In a recent Financial Times, one of the most widely read newspaper throughout the world, Professsor Sadatoshi Ito of Tokyo University, also a member of Economic and Fiscal Policy of the Government, contributed an article on recent global financial crisis triggered by the US subprime-loan and commented on arguments by some Japanese leadership that lessons could be learned by US from Japan on what Japan had taken over a decade 90's until recently to respond to burst of bubble economy.

Professor Ito clearly makes a point commenting the more rational and fast responses by US private sector and the government, demonstrating clear resilience of the nation.

Leaders and members of every sectors of the society of Japan follows the act of Professor Ito to express their own opinions to the world as appropriate otherwise Japan remains insular, irrelevant and incomprehensible to the rapidly globalizing world affairs as you see many places in this website.


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