Case Studies

Case Study Index

Executive Vice President Japan Leadership Advisory

The CEO of a company in Japan wanted to hire a Chinese woman as Vice President of Sales, overseeing a half-billion euro business in Japan and well over one hundred salespeople and managers. She was the most talented candidate for the job.

Yet putative “Japan experts,” internal and external alike, prophesied doom. The new vice president spoke no Japanese. Her mostly male team consisted of over one hundred people and mostly spoke no English. The company’s industry is frequently described as traditional, conservative, male-dominated, misogynistic, and even xenophobic.

“Japanese salesmen won’t follow a female leader, much less a Chinese woman who speaks no Japanese!”

“How will she communicate with staff? She cannot be effective if she can’t speak the language!”

“How will she communicate with customers?”

“Will the conservative male leaders of our Japanese customer companies take a Chinese woman seriously? You can’t possibly think they will!”

“How will she deal with the racism and misogyny of the Japanese? Will a foreign woman have the stamina for that?”

The CEO, undaunted by the warning, hired the Chinese woman anyway and then hired me to advise her.

We rapidly resolved the language issue. A junior salesman who spoke excellent English stepped up to serve as translator and interpreter.

As for her staff, I advised her to ignore preconceived notions of Japanese corporate culture because they don’t matter.

Leaders make company culture, not countries. The most successful leaders I know don’t change their leadership style to match the organization’s culture. They change the organization’s culture to match their leadership style.

I explained to her how to do this. Her staff abided with little drama. They spoke often and frankly with her, albeit through an interpreter. They used humor with her and clearly liked her. They trusted her implicitly.

As for the Japanese CEO leaders of her customer companies, I advised her always to walk into a meeting with an open mind.

Always presume people are undamaged until they prove otherwise. Never presume misogyny or xenophobia on the part of any of them.

“Most of your CEO customers are Japanese entrepreneurs,” I explained. They buy from you because you help them make the money they use to support their families, pay for their lifestyles, educate their children, and take their holidays. You help them leave a successful, thriving business for their children as their legacy. No entrepreneur would ever compromise the value you provide in Japan or anywhere else. Listen to them frequently. Help them make their businesses successful, and you will do fine.”

She visited her CEO customers frequently, listening, advising, and helping them grow their businesses. She became popular among them. They always welcomed her when she requested a meeting. She talked with them more frequently than any of her predecessors, all of whom were Japanese, and most of whom were men.

Her efforts paid off. She achieved the strongest sales results of any previous vice president who held the role.

The CEO was delighted—and vindicated.

Selling Capability Improvement with Dramatic Results

The Japanese subsidiary of a well-known global European company with a famous consumer product brand succeeded in capturing the number-one rank in market share, but only at a tremendous cost. Every season saw a deluge of returns of unsold stock, biting into the bottom line. The CEO insisted that salespeople must sell through, not just sell in.

“Impossible!” staff and managers alike had scoffed. “This is Japan!”

Two previous sales directors had failed to bring about the needed changes. A third was balking in the face of the challenge ahead when the CEO and I first met.

Many Japanese staff people were skeptical, if not resentful, of the idea of a gaijin (non-Japanese) consultant telling them how to do their jobs in Japan. So I asked questions instead.

I first helped the sales team gain consensus on desired business outcomes and decided how best to work with customers. I did not need to push principles on the sales teams. Many already knew from experiences of success what is in the customers’ best interests. I contributed my own ideas from my experience and expertise. Salespeople and managers did the same. Where salespeople were unconvinced that a method would work, we performed role plays together in Japanese. I often played the salesperson and asked a volunteer to play the customer with realism. Once convinced, a staff member documented what we had all agreed upon. I contributed my own intellectual property, which the client was free to use without limitation.

Salespeople began using the new approaches with customers and achieving success, and nothing changes mindset faster than real success. Sales managers carried the momentum forward with their teams independently of me. I continued to coach and advise.

Net profit nearly doubled the following year. The processes we documented remain part of the company’s selling method today. Sales teams own and update it periodically as the business and its people continue to grow and evolve.

Strategy for Rapid Growth—
What profitable business will you cut first?

Whenever I am helping CEOs and their teams with strategy development for business growth, I first ask, “What profitable business are you going to cut to make room for the growth you want?”

Vilmorin-Mikado is the Japan subsidiary of France-based highly innovative agro-tech seed giant Limagrain. Vilmorin-Mikado’s highest-value products are the proprietary seeds the company has developed using its research and development capability—from seeds that yield crops highly resistant to disease to novel and popular products, like small Japanese kabocha pumpkins.

The proprietary seed products were by far the most lucrative. Yet the company also had less much lass lucrative but still profitable legacy business as a wholesaler of other companies’ seeds and agricultural materials business. The wholesale business represented more than half the company’s revenues but only a small fraction of the profit.

Salespeople spent more than half their time and effort selling the commodities of the legacy business and felt dependent on the wholesale products to meet sales revenue quotas. The CEO wanted to expand the lucrative proprietary seed sales, and suspected the wholesale business was detracting from the proprietary seed business.

At first, the executive team was reticent about  the idea of cutting the wholesale business. Salespeople cringed at the idea of telling customers they could no longer sell certain products and worried about not being able to make their quotas.

The CEO was convinced nonetheless that cutting was the direction the company needed for strategic growth.

I advised raising wholesale product prices gradually to reflect the true cost to the business. When customers balk, refer them to other sellers. We worked out a reasonable process and timeline together.

At the same time, we developed and later implemented a program to improve salespeople’s capability to negotiate and close business for the higher-value proprietary seeds so they had the tools and self-confidence to replace the wholesale business revenues.

In cutting the wholesale business, the company’s annual revenues declined by over half.

Yet net profits jumped by over sixty percent!

CEO Vincent Supiot remarked, “We were able to achieve a dramatic strategic change and growth far faster than I had ever imagined possible.”

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