I am Tetsuya Sogo, a 1982 undergraduate (Ozeki lab), and have been entrusted by Professor Ohno to write an essay for the senior section of Waseda Mail Magazine. After graduating from Waseda university, I joined NTN Corporation, headquartered in Osaka, a manufacturer involved in producing and selling bearings and components for automobiles and industrial machinery, where I started to work as an engineer in the manufacturing department. From 2011, I held positions as an executive officer, primarily overseeing NTN Americas region. After working as CFO for three years since 2020, focusing on NTN's business revitalization, I have just retired in 2023 in accordance with the executive retirement age guideline of 63 years old. In this opportunity, I would like to describe what I, as an alumnus who worked for the same Japanese manufacturer for 41 years, have learned and how I have thought about corporate management in the trend of globalization.
At the age of 29, I participated as a member of the launch team for a new factory producing HUB bearings for automobiles in the outskirts of Chicago, USA, serving as a chief engineer. From 1989 to 1996, for a period of 7 and a half years, I experienced my first overseas assignment. While introducing state-of-the-art production facilities and technology from Japan at that time, we struggled with significantly lower productivity compared to the Japanese mother factory. We faced challenges such as low employee skills, high absenteeism, and high turnover rates. In an effort to bring about transformation, I repeatedly experimented with various approaches, reflecting on what constituted the core management issue and what needed to change. Ultimately, I learned that a “highly just evaluation and treatment that resonates with local talent to maximize their motivation” is essential. In other words, “people's behavior changes significantly based on how they are evaluated and treated.” I revamped the vague personnel evaluation, pay and treatment system of that time, objectively and fairly evaluating skills and performance in a way that everyone could agree upon, and clearly linking it to compensation. This led to improved employee motivation, and within a year, the entire factory, which had been in the red, astonishingly turned profitable. This experience made me realize the importance of designing systems that enhance employees' willingness to learn and motivation to improve, more than just providing technical guidance as an engineer. It became the cornerstone of my recognition of the significance of “Learning Organizations”, a concept advocated by Professor Peter Senge of MIT at that time.
In the process of introducing this new employment system, I explained the company's perspective and policies, aligned with our corporate values and vision, through direct dialogue with all employees. I believe that such dialogue was the key to the success that followed. I learned that even if my English was not good, I was able to convey what I wanted to say with passion from my whole body, that I needed English that would move people’s hearts rather than simply fluent English, and that fluent English was meaningless without an open mind and passion for change. Factory workers are especially diverse. Even though they are Americans, not all of them are born and educated in the United States. People from all over the world—Mexico, China, India, Russia, Ethiopia, Vietnam, and so forth—were working together. Therefore, basically, “a-un no kokyu” (communicating and agreeing with each other without exchanging words) does not work as it does in Japan. In Japan, from the time children are in elementary school, their teachers keep telling them to “think from the other person's point of view, and imagine how you would feel if you were in the other person's position”, but this method would not be effective if we were born and raised in a different environment or with a different way of thinking. It is rather dangerous to think that because you feel this way, the other person will feel the same way. Especially for Japanese managers, it was necessary to pay attention to the issue of age discrimination and affirmative action.
At that time, I wanted to learn American management practices while undergoing various trials and errors in the manufacturing field in the United States. From 1994 to 1996, I worked while studying for an MBA at the Kellogg School of Management at Northwestern University on weekends. As an engineer, subjects like strategic theory, finance, and marketing provided a fresh and eye-opening experience for me. The admission interview took place in a dedicated Executive MBA building resembling a top-class hotel. I was courteously guided to an office labeled “Assistant Dean”, where I was welcomed by a lady named Ms. Erica Kantor. Initially, I thought she might be a secretary, but she turned out to be the Assistant Dean. Instead of facing a panel of interviewers and expecting challenging questions, I was offered coffee or tea in a luxurious reception room and told, “I will listen to your story for the next hour.” This unexpected one-on-one interview began as I sipped coffee. This interview was completely different from what I had anticipated, and though I had never experienced such an interview before, in hindsight, I believe that providing you with a certain amount of time to freely express yourself, including how you convey your thoughts, allows various aspects of your personality to emerge. Erica mainly took notes of what I said without asking many questions. However, the idea of conveying one's own thoughts and passion within a limited time frame, such as an hour or even just 90 seconds, to ensure effective communication with the recipient, turned out to be an essential skill for working globally, as I repeatedly experienced during my work at NTN afterwards. Tailoring my way of thinking and approach to the level of my counterpart, making them understand and genuinely agree, and presenting it as a compelling story, are crucial skills for a management professional. Finally, Erica told me, “Officially, the final decision is made by the faculty after document review, but you will most likely pass.” Erica, a slightly older than I and elegant tall woman, gave me these words of encouragement. I named my first daughter, who was born just before I entered the Executive MBA program, “Erica” after her. My first daughter is now a working adult, so my interview with Erica was a long time ago, but it still left a strong impression on me.
After graduating from the Kellogg School of Management, I returned to Japan in 1996. For the 15 years leading up to my second trip to the United States in 2011, I worked in the headquarters' management strategy department, focusing on developing medium-term management plans. During this time, I concentrated particularly on global alliances, cross-border M&A, and engaged in negotiations that involved various forms of intellectual sparring, tactics, and probing for genuine intentions, experiencing negotiations from behind the scenes and oblique perspectives. However, I came to realize that ultimately, the success of alliances hinges on the mutual understanding and trust established with negotiation partners. In the context of medium-term management planning, I learned that it's crucial not only to have competitive strategies and theoretical frameworks, but also to ensure that every department and region is motivated with a sense of conviction. To achieve results, I understood the importance of facilitation. Neglecting this aspect could lead to the headquarters, often perceived by business divisions as merely a department of empty words, being unable to effectively harness both global centripetal and centrifugal forces.
In my second assignment to the United States for seven years from 2011 to 2018 as CEO of NTN Americas Region, I had to make decisions on a daily basis in a cross-cultural environment, especially in the entire Americas region that included South America, where no one knew the correct answer to management questions. I felt that it was very important to have the ability to sense the situation and atmosphere of an organization, which was difficult to express in words, through various interactions. All of the issues that I faced on a daily basis in the field were not something that could be analyzed logically like a computer that finds the correct answer. Rather, I needed to quickly make a better overall decision on the spot, and to do so, I had to polish my ability and sense to accurately perceive fundamental issues, and face-to-face communication was essential in doing so. In the MBA program, subjects such as strategy, marketing, and finance, were very popular, and there were many famous professors, so I put a lot of energy into studying them. On the other hand, subjects such as organizational theory and HR, were not so popular at that time. However, I feel that organizational theory and HR are becoming more and more important as I get older. During my assignment to the United States back when I was young, I challenged myself to make various changes to motivate the employees at a manufacturing company. In my second assignment to the United States, on the other hand, localization of upper management was a major issue to strengthen the organization in the Americas, including South America. So I had to entrust business expansion to the people who knew the markets of each country the best. For the Japanese people on overseas assignment, it is necessary to clarify why things cannot be conducted locally. It is easy and comfortable for Japanese people to communicate with each other, while localization is very tiring due to the language problem among other difficulties, but I repeatedly promoted town hall meetings with employees at all locations, leadership training for middle management, and executive development programs through collaboration with Kellogg School of Management, recognizing that without doing these, there would be no future. My belief that globalization is based on “motivating local talented people to fully demonstrate their abilities” has not changed at all since my first assignment to the United States. I want to realize a global learning organization that can operate effectively cross-functionally based on the close exchange of information between people across departments, a close-knit organization that does not generate any blind spots, by focusing on a middle-up-down management style that is indispensable to resolve the contradictions between ideal and reality in each working area.
Upon returning from the United States, I witnessed a critical consolidated financial situation caused by the lack of strategic management direction from the headquarters at the time, as well as the poor leadership and management of Financial Planning and Analysis (FP&A) functions. Particularly in Japan, along with significant impairment charges, urgent actions were needed as CFO to formulate and drive a group-wide corporate value revitalization scenario, supported by necessary funding. I focused on three main aspects in the comprehensive transformation of NTN: (1) Enhancing “Pricing Power” by moving away from the approach of satisfying all customers (product/business portfolio reform), (2) Shortening the “Cash Conversion Cycle” by departing from excessive inventory (production/logistics reform), and (3) Strengthening “Strategic Partnerships” by moving away from an in-house focused technical accumulation (procurement reform). The essence of this “Revitalization Scenario” required each region's thorough understanding and autonomous execution, adapting rapidly to changes in their respective business environments, necessitating essential communication and coordination between the headquarters and regions. As a common language, the introduction and deployment of Corporate Finance perspectives, including criteria for investment assessment and business valuation through the concept of capital cost, were initiated. On the other hand, we improved collaboration and integration among the disjointed key central divisions, finance headquarters, management strategy department, and each business planning department. The aim of such activities was to enhance the FP&A function of the entire CFO organization globally. In order to enforce group-wide CFO policies, I positioned the communication, while sending my regular CFO messages, with internal and external stakeholders, such as regional executives, stock and financial markets, as crucial for the company's value revitalization. Under tough business situations caused by the COVID-19 pandemic, semiconductor shortages, Ukrainian tensions, and rising raw material costs, I directed efforts towards accelerating the financial and stock price recovery. Over the course of three years as CFO, I came to recognize the importance and challenges of gaining the full understanding and commitment of the entire group, particularly the middle management level, regarding the significance of the tough business conditions, the need for transformation as a solution, and their contribution of effort towards driving the changes.
The attached photo is from my first visit this summer to the “Sogo castle ruins” in Kagawa prefecture, which my father used to talk about before his passing. During this visit, I paid respects at the graves of the samurai lords “Kazumasa Sogo” and “Masayasu Sogo” from the Sengoku period. I believe that the spirit of “Bushido” holds significant importance for today's leaders in Japan. Business executives must constantly introspect, ensuring they have nothing to be ashamed of, reviewing whether their actions and words might evoke customer discontent or cause embarrassment to their employees. This introspection forms the foundation of “Business Ethics” and “Corporate Social Responsibility”, and I firmly believe that it paves the way for the long-term growth and development of Japanese companies. Kazumasa Sogo, who was feared as “Demon Sogo”, prioritized the creation of a country where everyone could laugh together in peace over advancing his own position or expanding his territory. I heard from the chairman of Sogo family association that Kazumasa Sogo is still respected and loved in this local area, and this story reminded me of the importance of pursuing true “ESG management” and “human capital management” in corporate management, without merely following superficial trends of the world, or becoming a good boss who only shows pretended kindness. Listening to various anecdotes of great ancestors, I felt both ashamed of my own shortcomings and motivated by their admonishments.
KINGRYOさん「おはようございます🦁💤 2023.5.14(日)am11:26 また昨日の景色が見たいから、 KING RYOは今日も歌います🎙️🎵 みんなもファイトやで👍 photo by @a_kwsk_1985 https://t.co/o5ulX5ngkf」https://twitter.com/kingryoworld/status/1657573189848043521
BUCK-TICK OFFICIALさん「🔱BUCK-TICK TOUR 2023 異空-IZORA-🔱 ツアー特設サイト<SPECIAL>にて ファンクラブ[FISH TANK]、モバイルサイト[LOVE & MEDIA PORTABLE]会員様を対象とした企画他、様々なツアー連動企画を実施❗️ 🔽ぜひ、<SPECIAL>をチェックしてください🖐️😊 https://t.co/7wYLoylFuG #BUCKTICK #異空 #IZORA」https://twitter.com/BUCKTICK_INFO/status/1657582002009243649
BUCK-TICK OFFICIALさん「📢ツアー会場のCD販売ブースにて、 Album『異空 -IZORA-』をお買い上げの方に、 先着で「BUCK-TICK/異空 -IZORA-」B2告知ポスターをプレゼント!🎁 また、デビュー35周年メモリアルグッズ「BUCK-TICK ORIGINAL NAIL COLOR SPECIAL BOX」も販売✨ ぜひ、お立ち寄りください🙌 #BUCKTICK #異空 #IZORA」https://twitter.com/BUCKTICK_INFO/status/1657582002131075073
KING OFFICIALさん「【TOMORROW】 ご予約受付中 2023.5.15(Mon)SHIBUYA RUBY ROOM テツリの部屋 出演 ACT ONE AGE(Dr.ルーベラ木村カエレ) 部屋BAND Special guest:KING RYO OPEN 19:00 / START 19:30 予約・当日¥3,400(+1D) ■入場チケット 各アーティスト予約 KING予約:https://t.co/fVrWiN5YHk https://t.co/NP27kKmBKQ」https://twitter.com/KINGOFFICIAL114/status/1657588266517041152
KING OFFICIALさん「【KING WEB SHOP】 ■チェキ 公演当日21:00まで https://t.co/O4cjT66UHp ※受付期間後は、フォームが開いてる間は、ご注文承ります。 お忘れの方は、ご注文いただいて大丈夫です。 ■KING NEW ALBUM 〝CRY OUT TO HEAVEN〟 https://t.co/epgpeQqgtO ■通常通販 https://t.co/ERDSYYIonH https://t.co/ZtwZsnOXCq」https://twitter.com/KINGOFFICIAL114/status/1657588316370513920