Thursday, November 18, 2010

The Future of Japan: What Can Be Done?

I was priveleged to be part of a delegation of executives today, through the European Business Council (EBC), that visited the Ministry of Economics, Trade and Industry (METI) for an open discussion on 2 issues surrounding the future of Japan;

1. Human Capital- How can Japan build human capital that the Japanese business community needs to take part in the global economy

2. Foreign Direct Investment- What can Japan do to incentivise it

METI and the Japan government appear to be genuinely concerned about Japan's position in the global community.

The fundamental basis of the argument was set early in the meeting by the Japan President (a Japanese gentleman with a glowing presence) of one of the world's largest and most successful multinational companies commented that "The Government of Japan is only ever considering how to get in the game, but they are never considering how to WIN THE GAME".

This CEO went on to say that Japan needs to stand up and do something extra-ordinary. If Japan's corporate tax rate is 42%, and the rest of the world is around 25- 30%, then how about Japan standing up and offering a corporate tax rate of 15% to any foreign direct investment in Japan?

Or, he suggested "If you want research and development in Japan, why not offer a multi-national company 100 million dollars to move their facility here?"

As this CEO quite rightly mentions, 100 million dollars or a 15% tax rate is a game winner. A mediocre 5% reduction in the corporate tax rate will not incentivise anyone to shift their business to Japan.

The delegation then openly asked METI to consider a number of other points;

- Female participation in the workforce is essential. How about being the world leader in "Childcare Facilities", so females can go back to work? Reform is needed to incentivise females back into the workforce, and a mind change is required in Japanese child raising that placing your children in facilities is OK!

- A mind change is needed in Japan with regard to having the young youth of Japan get overseas experience. Overseas experience needs to be seen as the "thing to do". The Japanese government has got to send this message. Why not incentivise US and European universities to come to Japan, or fully fund them here?

- Young Japan needs to be encouraged to challenge things. There is a lack of urgency in understanding that if the young of Japan don't stand up, they won't have a future at all. Once again, someone needs to send this message, and someone needs to encourage entrpreneurship.

- Japan needs a silicon valley. There are a number of leading industries in Japan that could lead Japan into the future; mobile technologies, data center offerings, senior citizen business, self health care, and many more, but they need a "silicon valley" to assist in their development

- Japan needs to sell itself better to the world. There is an incredible amount of potential in tourism and other industries if only Japan can market themselves professionally to the world. This means being strategic with advertising such as "Yokoso Japan" that was incredibly poorly coordinated with each part of the process done independently by a different vendor (a review from the Japan President of one of the world's leading advertising agencies).

The summary being that while the Japanese Government is finally seeing that they have to do something, they are NOT "getting the point". To win the game, you have to stand up and be different. Be bold. Do something that nobody is thinking of doing. It was a pity that such a great discussion was only heard by a couple of "kacho" from METI / JETRO. That alone just shows the extent of the urgency...... there is still not enough urgency......

It really does start with the young of Japan. They are the future, and the Japanese government has to start sending the message to get them out of Japan to learn other languages and cultures. This coupled with some "BIG INITIATIVES" that shock the world and actually are game changing "FDI bringers" would really turn Japan around.

More Than Japan Housing, More Than Japan Cars and Furniture, More than Japan Serviced Apartments, More Than Japan Destination Services, More Than Japan License Conversion, More Than Japan Information!

The H&R Group is MORE THAN RELOCATION!
www.morethanrelo.com

Wednesday, November 17, 2010

Success in Relocation Team Work

I was priveleged to attend a seminar held today by Michiko Achilles, Chief Human Resources Officer at Aozora Bank, and be able to apply what I learnt to our real estate and relocation industry.

Ms. Achilles ended her presentation today with 7 pointers to sucessful interpersonal relations with a view towards "diversity in the workplace"; something that Japan seriously needs to look at to revive their economy.

1. Test your assumptions (may be what you think is right isn't....)

2. Respect differences (different opinions, different personalities... etc.)

3. Understand yourself (you can't understand others until you understand yourself)

4. Demonstrate empathy (in Japanese; 相手の立場から考える)

5. Find things in common (what do you have in common with the people you work with.....?)

6. Don't shoot for perfection

7. Enjoy differences (make good of a diverse work place!)

Not bad advice for anyone looking to improve their teamwork!

Saturday, November 6, 2010

Data Protection in Relocation


I attended a session on “Data Protection” with a view to doing what is right for our Japan (Tokyo and Nagoya) Real Estate, Relocationa and Leasing Company. I would like to share what I learned.

1. While the security provided on by “systems” is important, staff awareness and training on data protections is often overlooked.

ie. It is good to have passwords, timeout functions, firewalls, spam protection and keys for cabinets, but if we are not aware of what data protection is required, and security training is not provided, then any systems we have don’t have much meaning.

2. The main steps in understanding data protection properly are;

Creating Values, Educating, Discussing, Training and Re-Training.

3. Independent items of data provide little risk. For example, a list of names has no particular risk if leaked alone. However, if the list of names also gives corresponding address information, phone numbers, email addresses, birth dates etc., then it quickly becomes a high risk in terms of data security. It is therefore the combination of data that is important. You need to correctly protect your combinations of data.

4. Within our offices, it is a good idea to consider the kinds of combinations of data that exist.
eg. Names, addresses, birth dates, mobile phone numbers, bank account details, work permits / visas, passport copies, registration card documents, medical histories, what else?

5. It is also best to consider where else we have the data mentioned in 4 above. Do we have it in our cars? Do we have it at home?

6. There are two types of data to consider;
a. Data At Rest: Data that is sitting in one stationary place
b. Data In Motion: Data that is moving from place to place

7. Data protection is all about reducing opportunistic events. One often implemented policy is a "Clean Desk Policy", as messy desks with a lot of diffirent information on them can create the "opportunity" for information to get into the wrong hands.

8. Even for small companies it is recommended to build a "Security Policy", to train employees on it, and then regularly re-train them.

Wednesday, November 3, 2010

Trends in Global Relocation

Having just attended the Worldwide Employer Relocation Council (WERC) Conference in Seattle, here a summary of the trends that were reiterated throughout the 3 days.

- Policy is becoming increasingly global and emphasis is going on flexibility to meet business needs
- Mobility administration within companies are outsourcing more, but there are now less internal resources and therefore more emphasis on regional centers taking responsibility
- There is continued pressure on cost control. and through this a lot of emphasis on how you can “add value”.
- All companies are under pressure to financially perform, so expansion continues in terms of responding to new patterns, M&As and new country start ups. It is different activity, but there is vibrant new activity out there.
- Suppliers / vendors must demonstrate their value.
- There is now a never ending race to keep your business! It is all about MORE FOR LESS, so you continually need more innovation, more efficiency and less cost.
- Innovation is needed on a local and regional level, not just at the level of relocation management companies or global HR.
- There is a continuing need for cost saving initiatives
- More diversity in programs is being demanded in the "new norm". Things are changing fast, so flexibility is key. eg. There are tighter tax restrictions in some countries, many companies are placing more emphasis on consistency of programs across locations and there are more short term assignments now- up to 18 months in length.
- There is a reluctance to relocate, mainly in the US, due to the decline in house values, as people are scared to sell as it will realize large cash losses to them.
- There is a re-assignment of workplace mobility within talent management going on, and talent management people now often at the table when making decisions
- Assignment management services are a large market; only 14% of this outsourced in the US vs 60- 70% of other services
- RFP and RFI activity is the highest ever. Companies are out to bid, so there is a natural rate of attrition; vendors / suppliers will change
- Contract renewal periods for supplier / vendor contracts have been shortened
- Turnover in decision makers within companies is high; multiple relationships need to be managed to maintain business
- Master service agreements and “one vendor”agreeements are becoming popular; ie refined supplier relations and less suppliers are wanted in some cases.
- There is a strong need to manage data on everything you do
- There is a strong need to use this data and show your value

Some of these repeat the same message, but it is obvious that our industry is a much different place compared to pre-Lehman days.

More Than Japan Housing, More Than Japan Cars and Furniture, More than Japan Serviced Apartments, More Than Japan Destination Services, More Than Japan License Conversion, More Than Japan Information!
The H&R Group is MORE THAN RELOCATION!