インタビュー・対談シリーズ『私の哲学』
Presented by "My Philosophy®︎"
Vol.7　Kazuhiro Hasegawa

Mr. Kazuhiro Hasegawa, the head of the Corporate Power Institute, has been involved in the restructuring of over 2,000 companies, successfully turning around the majority of them from deficits. We had the pleasure of discussing the management philosophy he has held dear over the course of his 50-year career.

Japanese

Profile

Vol.7 Kazuhiro Hasegawa

Representative of the Corporate Power Institute | Senior Researcher at the Inter Professional Education Research Center, Chiba University of Commerce (CUC)
After graduating from Chuo University's Faculty of Economics, Kazuhiro Hasegawa was in charge of marketing and product management at Jujo Kimberly, General Foods Corporation, and Johnson & Johnson. In 2000, he became the President and CEO of Nikon-Essilor Co., Ltd., a joint venture between Nikon Corporation and France's Essilor International S.A. He took the company, which was suffering from a deficit of 5 billion yen, and turned its operating profit positive in the first year, achieved regular profit and dividends in the second year, and transformed it into a debt-free management by the third year. His management skills have been highly regarded. Currently, as the representative of the Corporate Power Institute, he provides management consulting focused on corporate restructuring to seven companies and teaches courses for executive training at Chiba University of Commerce, leading a busy life traveling from east to west.

*The titles and affiliations are as of the time of the interview (April 2010).


The President’s Notebook

“The President’s Notebook: Transforming 2,000 Deficit Companies into Profitable Ones (Nisensha no Akaji Gaisha wo Kuroji nishita Shacho no Noto)” is founded on what I’ve termed the “Aha! Notebook,” a collection of insights I’ve gathered over 40 years. Thankfully, it has been widely read, likely because it addresses the needs and concerns of those living in our current era. In these times of economic downturn, the term “anxiety” frequently arises, and it appears many are feeling uncertain about their ability to survive. This book is filled with wisdom on how to navigate through life’s challenges. As a child, I was surrounded by adults who would scold or advise me, allowing me to naturally acquire the wisdom needed to persevere.

However, in today’s society, such interactions have diminished, and it feels as though the common sense of the past is being lost. This is precisely why I wanted to pass on this essential wisdom through my book. Our country will inevitably face crises in the future. Both in business and in personal life, various factors will likely worsen conditions significantly. To thrive despite these challenges, I encourage the use of “The President’s Notebook.” Surviving is essential for everyone, regardless of whether it concerns businesses, individuals, or any age group. My hope is that my book serves as a guide for a wide range of people.

Recording Events

The “Aha! Notebook,” which served as the basis for “The President’s Notebook,” is a collection of insights, questions, and curiosities I accumulated in memos throughout my career. At that time, infrastructure was not as developed, and information was not as abundant as it is today. Additionally, even when information was obtained, there were no means to record or copy it. Thus, I believe that by jotting down even the trivial things, I discovered secrets to improve my work and life. Just as an apprentice learns skills by observing the master craftsman, I diligently noted everything I experienced, realized, and learned at the company.

Nowadays, in business schools, one can learn about various companies’ decision-making processes, but these may not always be linked to real-life cases. Furthermore, classes only cover a fraction of the vast success stories that underpin business models. Many employees at my company have earned MBAs, but having an MBA does not necessarily mean one is remarkable, nor does it guarantee proficiency in one’s job. However, the simulated management experiences in an MBA program are invaluable, and the knowledge gained from numerous case studies can be greatly beneficial in actual management situations.

The Essence of Management

In management, the most crucial element is people. The success in turning over 2,000 companies into profitability is due to the high level of consciousness and effort of the employees. An organization that generates real benefits cannot be created unless each employee harbors a strong commitment to profit. Since corporate restructuring is a serious challenge, I interact with employees in a strict manner. While this may seem extremely harsh, it is underpinned by a desire for their happiness. People are diverse, with different backgrounds and values. Being strict may lead to being disliked, but ultimately, everyone understands and grows. I believe that corporate revival is about the growth and happiness of the employees working there. Working with compromise only leads to stress, and it’s essential for everyone to be aligned in the same direction. Even when being strict, it’s crucial not to harm an individual’s character. It is only with love that true revival can be achieved.

Corporate Strength Research Institute

Currently, our primary focus is on consulting services. We have seven clients, but due to confidentiality, our work may not be as publicly visible as our lectures and publications. At speaking engagements, I’m often asked about how we managed to turn a company with a 3 billion yen deficit into one making several billion yen in profit. While simply stating that we changed the organization or certain aspects may not be entirely clear, there are elements in the actual fieldwork that cannot be fully expressed in words. I immerse myself in the companies we are rejuvenating, consulting as a part of their fate.

The essence of business rejuvenation lies in identifying problems and implementing improvements, yet many fail to accomplish this, likely due to a lack of understanding of specific methodologies. When initiating a revitalization plan, the first step is to create an action plan with defined objectives. We also develop a detailed task checklist, but completing it fully is a significant challenge. The action plan specifies who is responsible for what and by when. However, the process often fails when people stop following through or make compromises along the way. Persistence and rigorous follow-up are crucial.

My role involves identifying problems by engaging with every aspect of a company, running from department to department, regardless of location, both domestically and internationally. This includes visiting every branch and department to see how well operations are being carried out. To fully understand the company, I might spend half the month visiting subsidiaries. While this means I’m often away, and my employees sometimes wish I would “just come back,” deep down, they seem proud of my hands-on approach. Theory alone is not enough; it’s vital to be on the ground, interacting with people.

Step by Step

My guiding principles are sincerity and perseverance. About 60 years ago, I learned the phrase “step by step” from my elementary school teacher, which translates to “perseverance” in Japanese. The strength comes from walking one step at a time, feeling the ground beneath one’s feet. I think modern Japanese people tend to undervalue this approach. Characterized by the “leverage boom,” there’s an increasing number of people seeking the greatest effect from the least effort. However, reality is not so lenient. “Those who exert the greatest effort reap the greatest rewards” is both the truth and the insight I’ve gained from 50 years in business.

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Spending time with Mr. Kazuhiro Hasegawa, I felt energized. His book and the stories shared during our interviews, all based on real-life experiences, were incredibly insightful. I hope to apply the lessons learned from his business experiences to my future management practices. His book contains a phrase that deeply resonates with me: “Step by Step! Those who proceed one step at a time will ultimately go the furthest.” I aim to continue developing my business with perseverance and dignity.

Editor-in-Chief of “My Philosophy,” DK Sugiyama

April 2010, at the Corporate Power Strength Research Institute,Edited by: Naomi Kusuda,Photographed by: Daiki Ayuzawa