Japanese companies in industries outside of technology/engineering have struggled to do well outside of Japan. What is Fast Retailing doing differently?
It all stems from our perspective on what we do. We are successful outside of Japan and outside of Asia because we are truly committed to the idea that companies can improve people’s lives. We believe that we have a very real responsibility to do good in the world and not just make money. So I think for that reason we are appealing not just on a product level, but truly on a brand level. People are able to identify with Fast Retailing and what we want to represent in the world.
You were very successful at Apple before your recent move to Fast Retailing. What are your priorities for the next couple of years on creating talent and to what degree do you think you can draw on your experiences at Apple?
At Apple University we took an educational approach, not a training approach. This means engaging people in a meaningful discussion and helping them to challenge the way they think about their work. I think something very similar can happen at Fast Retailing. Our job is to promote new ways of thinking and a lot of that has to do with teaching the DNA of the company. By helping people understand and align with the company’s core values and culture, we can provide a roadmap for how to succeed outside of their home country or region. At Apple University, we taught a class called “What Makes Apple, Apple” and that became an essential way that we helped people to think about the brand and its DNA. This wasn’t a training class. We didn’t say that at the end of the class, the participants would be able to do X, Y, or Z. What we said instead was that at the end of the class, they would think differently about how to talk about Apple as a brand. Though Fast Retailing is a different company in a different industry, we are endeavoring to use these same principles to help us succeed globally. I think a lot of companies that aspire to do the same are going to start focusing more on developing a strong company DNA and galvanizing their talent to really understand and promote that DNA.
When you think about it, DNA is what Apple was all about. When you consume an Apple product anywhere in the world, the experience is the same. Is that your priority at Fast Retailing?
When I was hired at Apple in 2003 I was the director of retail training so I was in charge of training strategy for the, what is now, more than 400 Apple stores. Many years ago, Steve Jobs came in and spoke to the people who worked in the retail division about our business. I will never forget the praise he had for our retail stores. He said that no matter where in the world he went, he experienced the store the same way: Employees approach customers and talk about Apple products the same way. So, I think we achieved a level of consistency that is a fairly rare thing in retail. However, inculcating that strong sense of identity is difficult to do, especially in a large, established company like Fast Retailing (we are already the 4th largest specialty store retailer in the world). At Apple when we began talking about cultural identity, the company was a lot smaller than it is now. So, we have the added challenge of trying to shift the thinking of people who already have a certain way of approaching their work.
How does embracing the culture benefit the employee?
When you understand and embrace a unique company culture, you feel a sense of acceptance – almost a sense of empowerment because your ability to influence grows. You can make decisions and people will trust you because they will believe that you are capable of making decisions that will move the company in the right direction. That was really true at Apple. Once you could demonstrate that you understood the company’s culture and that you were good at what you do, you would be invited to make important decisions and help shape the direction of the company. The same criteria are important at Fast Retailing. If you can show that you understand our culture, embrace our values, and are good at what you do, you will be really empowered to make decisions. The other side to having a strong and unique culture is that when you struggle to understand the DNA – the culture tends to reject you like a germ being attacked by white blood cells. Part of the culture at Fast Retailing is the “Japaneseness” of the company. If you don’t embrace it or understand it, then you risk rejection from the people who do “get it.”.
What did you do during your first 100 days as you transitioned into your new role in a new culture?
My goal was to learn as much as I possibly could about the company as quickly as I could. At Apple, you had to reach certain milestones before you could influence and make decisions and this usually took about 3-6 months. So, I artificially imposed a similar timeline for myself at Fast Retailing. About a month into my time there I had met with an old colleague of mine and told him that I am at the point where I am waiting to gain credibility so that I can make the changes I see necessary. His advice to me was not to wait. He said that coming from one of the strongest brands in the world, I already had more credibility than I realized. So, the very next week I went to the CEO and I said I wanted to centralize part of the organisational structure and I got immediate support. So that was my first strategic decision and I made it about 2-3 months before I thought I would be able to. I realized that I shouldn’t expect my new company to act like my old company even though they have some similarities in branding and uniqueness.
What is your main priority as CLO for the next 1 year at Fast Retailing?
My top priority is to enable the growth of Fast Retailing. I plan to do that by teaching leaders to be as effective as they can possibly be. Also, my goal is to find innovative ways to evangelize the company DNA. Finally, one of my biggest priorities is to think well outside of the box and bring new innovative ideas about how to get people access to learning in my company.