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| Shibuya Crossing in Tokyo, Japan |
This summer I visited Japan for the first time. It has
been my country number 56 to visit, including dozens of times to many other
Asian countries, but my first visit to Japan. The development in Japan has been
remarkable since the end of the Second World War, but with emphasis on
"has been". Japanese economy has not really grown since the economic
bubble busted in 1991, almost a quarter of a century ago. China overtook Japan
as the second largest economy in 2010, and Japan faces a decreasing population,
expected to decline from current 127 million to as low as 90 million people in
2050 with 40% above 65 years old.
Yet, Japan is a super advanced society with one of the highest standards of
living in the world. And the Japanese (men) are still hard working. In
Hiroshima I met Masato and his family. He is the managing director of his
own manufacturing business with twenty employees. He bought his own company 11
years ago and has since grown it with 30-100% per year, with export customers
in many countries. As such, Masato is the living example of the dedication and
hard work that has made Japan so successful: "I know I make sacrifices now, but I make good money now". I
asked him, so what are your plans for the weekend? He replied: “I will work today, Saturday, and tomorrow
Sunday, I go to Tokyo for a meeting”. I felt embarrassed when I told him
how long (3 weeks) holiday many people in Europe take every year.
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| Shinkansen high speed train |
Onboard Shinkansen (the famous high speed
bullet trains), the very symbol of Japanese efficiency and technology, I met
Hiroshi, a retired IT engineer, now working as an independent consultant
advising organizations on it-security. We discussed the implementation in Japan
of a national identification number, similar to what Denmark has had for the
last four decades with the CPR-number. "I am a workaholic", he told me, "I have always worked, so why should I stop now?". Hiroshi is
not alone: 'Ghosts' continue haunting Japan incorporated, according to Wall
Street Journal. Former chief executives continue to stay on the payroll serving
as 'sodanyaku' or 'komon' meaning advisor or councilor. A
recent dispute was on the 79 year former chief executive of Toshiba now serving
as an advisor for the current chairman, despite being more than a decade ago he
left his executive position. This makes it very difficult for new executives in
charge to change wrong decisions of the past
Japan has been at the leading edge of technology but are now struggling to keep
pace. Once Sony was the world’s leading electronic brand, but it has now been
overtaken by Samsung and Apple. Once Japanese cars ruled the world, but now
many European car manufacturers are again taking the technological lead. Japan
is one of the most homogeneous countries in the World and most people speak little English. Combined with the old corporate governance codes, this may hinder the
needed innovation to really move the country forward. As my good friend
Soulaima Gourani puts it: As a country you should not ending up like Japan
where more diapers are sold to elderly than to babies.
"In Group Supply Chain we work cross-functionally and holistically with all aspects of our business. Supply Chain touches many functions such as sales, marketing, finance, production and logistics. It is our job to ensure that all functions look at our business through the same pair of lenses.
