Japan True or False

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TABLE OF CONTENTS

Part 1: 63 True or False Questions (Answers in Part 12)

13

It might be interesting to first try and answer these questions, and then compare them to my answers in Part 12. If we ever work together, this comparison may be of reference to better understand our assumptions, mind-set, and where we respectively are coming from. Some of these questions are clear-cut. With others, my answers may seem to differ from a traditional, stereotyped, textbook answer. It may be easier for many Japanese lawyers, your Japanese top management, or your personnel manager, to more readily endorse this textbook answer. Except for simple, clear-cut issues of statutory regulation, it can rarely be unequivocally said that something is ‘legal’ or ‘illegal’. The word is often, and understandably loosely used, when more complete and precise communications are not possible. Most of the important issues that come up are subject to interpretation, with wide, deep swaths of gray. With personnel issues and labor relations in Japan, sometimes what is thought to be easy, risk-free implementation ends up being too costly and damaging to your people and your business. The risk assessment is fundamentally flawed, and a lack of knowledge and experience of other possibilities and a better way, results in bad judgment and poor results. Some creativity, better strategy and tactics, more explanation, apology and time spent in properly communicating with all staff, are elements that are often missing. A sincere, careful, and heartfelt communication process with the necessary content will also result in smoother, faster implementation, more effective results, happier people, and higher morale at the company.

1. 63 True or False Questions on Human Resource/Personnel Issues

17

2. 63問の人的資源/人事に関する「ウソかホントか」問題

24

Part 2: Observations and key points

31

In this book I did not want to focus only on my clients’ business issues, challenges, the problems they need to solve, and how we helped them. I hope some readers, including Japanese readers, will be interested in some of the human and social context issues surrounding this. This first-half description of today’s human and economic environment, and the problems and challenges of modern day life Japan, leads into a second half of this part that mostly focuses on how to effectively handle staff reductions at companies. There is also a description of some flawed downsizing approaches. Virtually all smaller Japanese companies, and their thoughtful managers and unions, are too smart to make these costly and devastating mistakes. They also cannot afford them, and have no way to get their hands on the large sums of money necessary for these very rare, and extremely rich extra, kibotaishoku/voluntary retirement programs. At these smaller employers, from the beginning, there is no attractive severance package available, so there is no incentive for strong performers to voluntarily leave. Instead the emphasis is on keeping the best crew members, and dumping the unnecessary cargo to maintain job security for as many employees as possible. Only a comparatively small number of the largest, cushy Japanese employers, and a few foreign capitalized firms, have access to the cash, or are able to borrow the cash for large severance pay outs. Even such costly, strategically poor staff reductions, where high performing, needed people are the first to resign, may result in short run profitability, however, the company and its manpower are unnecessarily weakened. The firm’s vitality and potential are damaged. The damage has been beyond repair in many foreign capitalized firms, that only knew about, or who felt they had to use the strategically poor approach.

1. Observations and Key Points in English

35

2. オブザベーション及びキーポイント

61

Part 3: An overview and some helpful background before reading the case studies.
A look at how we work with clients, and what this book can help achieve

89

1. If Your Reaction is, “Yeah, I Agree, that’s Us,” You’re in Good Shape

93

2. Anybody Can Reduce Staff. It is the Easiest Part, not the Critical Part of Restructuring.
Make Sure it Doesn’t Hurt More than it Helps

94

3. Are You Wasting Money on non-Strategic Retirement and other Benefits?

95

4. Do You Know What to Do if A Union Knocks? If One is Troubling You,
the Solution is Surprisingly Quick and Simple

96

5. With all the Headhunters Knocking on My Door, How Do I Pick One to Work With?

98

6. Why TMT’s Approach to Restructuring is Uniquely Effective and Completely
Risk Free

100

7. A Perspective – – Key Pay and Personnel Policies to Watch Out For

102

8. How do We Hire Good Japanese, and Protect Ourselves from the Local
Labor Market and “Labor Laws”?

105

Part 4: 37 recent signed client-identified case studies/testimonial letters

109

Many of these are detailed and give client perspective and verification of what was accomplished, how, and why we succeeded. A careful read will open up more possibilities for you, reassure you, and give us all the heart and confidence we need to move ahead.

1. AXA Investment Managers

113

    2. BioMérieux

114

   3. Cadence

115

4. Catapult Communication

117

   5. CDC Marchés

118

6. Danisco Cultor

119

  7. Danzas

120

 8. eigo town

121

9. Electrolux/Noble Biocare

122

10. Elle International

123

11. Fusite Division (Emerson Japan)

125

12. Hertz Asia Pacific

126

13. HMV

127

14. Ingersoll-Rand

128

15. Kemper

130

16. Kennametal Hertel

131

17. Kimberly-Clark

133

18. Lands’ End (Reader’s Digest finale)

134

19. Liebherr

136

20. Maxtor Japan

138

21. Merial

140

22. Moog

141

23. Nippon Donaldson

143

24. Radiometer

144

 25. REI

145

26. Rohm and Haas Japan K.K.

147

27. Royal Exchange Assurance

150

28. Schindler

151

29. SGS Incorporated (Societe Generale de Surveillance Inc., Japan)

152

30. Shriro Trading Co., Ltd.

155

31. Snap-On Tools

158

32. Solectron

159

33. Thomas & Betts

160

34. TimberWest

162

35. Toyoda Sulzer

164

36. UPS Yamato Express

165

37. Villeroy & Boch Tableware

168

Part 5: Case Studies

171

These are real case studies with actual dates, facts, figures, conversations etc. Sometimes the reports, position papers, and working documents actually used appear as exhibits. The players and company names, industries, nationalities, exact location of operations are not, and will not be revealed. For client signed, name-identified case studies, please read part 4. The longer ones there in particular will provide credible detail for you, and be of reference on what can be done, and how to do it.

1. The Acquisition that (Probably) Luckily Didn’t Go Through

175

2. By Agreeing to Vote Out a Union, Switching Regular SEISHAIN Employees
to Cheaper Part-Time Status, and Accepting Other Changes, We Were Able to
Automate, and Keep a Factory Open in Japan (instead of production moving
offshore to China or somewhere)

185

Exhibit 1: Agreement Proposal (with A Division)

194

Exhibit 2: Time Schedule, Action Items, Comparison of Old and New
with Cost Savings

197

Exhibit 3: Changes Made (Division A)

202

Exhibit 4: TMT Changes to the Rules of Employment and Related Systems, Including
Coordination/Tie-in with Division A (A) and Division B (B)

205

3. Starting with the ‘Radical’ Union, and Driving Change through Their Participation
Can Work

211

4. Acquiring, Merging, Shrinking, Closing, Relocating, Declawing, (but failed
Deunionizing) at Multiple Facilities

218

Exhibit 1: Preliminary Report and Recommendations on the ABC and XYZ Human
Resource Policies and Systems

230

Exhibit 2: The Situation as I See It

237

Exhibit 3: Closeout Report on Work Done so Far

239

Exhibit 4: Requested Addendum to August 21, 2000 Close-out Report

244

5. The Most Unlikely Client Becomes a Close Client Including a Landmark Trip Together
to the Horses Mouth — the Tax Qualified Pension Section of the National Tax Agency
to Cut-back a Retirement Benefit

248

Exhibit 1(1): Employee Empowerment and Participation in Decision Making at the
Company

258

Exhibit 1(2): 会社における従業員の経営参加

259

 Exhibit 1(3): Labor/Management Workers Council on Wages, Benefits and other
 Working Conditions

260

Exhibit 1(4): 賃金、退職金その他の労働条件においての労働経営の労働協議会

261

Exhibit 1(5): Explanation of the Approval Process on Changes Concerning
the Retirement Benefit and other Areas

262

Exhibit 1(6): 退職金規程とその他の規程の変更調整が承認されるまでの過程と
説明

263

Exhibit 2: TMT Seminar Evaluation Form

264

6. How it Can be Easier to “Fire” 17 People (Including the “One Bad Guy”), Give a Client
All New and Better Rules of Employment (ROE) and Salary System, and Remain
Union Free than it is to Simply Fire the One Bad Guy Who Brought in the
Outside Union (and had Half the Staff Signed Up for Union Membership).

272

Exhibit 1: Where Can We Go From Here?

279

Exhibit 2: Just for the Record

282

Exhibit 3: To All Employees of Widge — Explanation of the Restructuring
Program January 11, 199X

287

Exhibit 4: Seminar Agenda

292

Exhibit 5: TMT Seminar Evaluation Form

293

7. An Extremely Fast, Direct, and Tough “Termination” Style is Under Certain
Circumstances, the Best Way to Go, Especially at Financial Institutions, (but Should
be Avoided Whenever Possible)

297

8. A Case Where Only a Well-Planned, and Orchestrated Surprise Attack Against a
Diehard Communist Union Leader could Get the Best Results. (But it Ended with
a Humbled Diehard still Bunkered-In.)

301

Exhibit 1: Letter distributed at all day seminar to all employees on
launch/announcement of staff reduction

307

 Exhibit 2: Preparation/answer for a Labor Relations Commission (LRC) Hearing from
company

310

Exhibit 3: Next Steps for Our Defense at Chiroi (Regional LRC)

317

Exhibit 4: Talking Points and Strategy for a Settlement

322

 9. An Expat CEO Decides It’s Less Frustrating and He’s Much More Powerful and
Effective without a High Level Personnel Manager in the Way

324

 Exhibit 1: Key Issues Hindering Your Success and Ambitions for the Japanese Market
Place

332

Part 6: 50 signed client testimonials from earlier Japan Times books and publications

337

50 Signed Client-Identified Testimonial /What-was-Accomplished-Letters
from the Early 80’s to Early 90’s

1. Taken from Labor Pains and the Gaijin Boss published by Japan Times, 1984

(1) SEARLE YAKUHIN K.K.

341

 (2) Grieveson, Grant and Co.

342

(3) NIHON DYNATECH, K.K..

343

(4) Foseco Japan Limited

344

(5) United Artist

345

(5) United Artist

345

 (6) DATAQUEST JAPAN, LTD.

346

(7) The Reader’s Digest of Japan, Ltd.

347

2. Taken from Taking Charge in Japan published by Japan Times, 1990

(1) Kuehne & Nagel

348

 (2) A.C. Nielsen Company of Japan Ltd.

349

(3) ARC International Ltd.

349

(4) Banque Indosuez

350

(5) Bristol-Myers K.K.

351

(6) Cargill North Asia Ltd.

351

(7) Ecco Japan Co., Ltd.

352

(8) Wells Fargo Bank, N.A. Tokyo Branch

352

(9) Federal Express Japan K.K.

353

(10) Kohler Company

354

(11) Wyeth (Japan) Corporation

354

(12) Kodak Japan K.K.

355

(13) Monsanto Japan Ltd.

355

(14) Lufthansa German Airlines

356

(15) Ore-Ida Foods Japan Inc.

357

(16) Sandoz Yakuhin, K.K.

358

(17) Teisan K.K. (L’Air Liquide)

359

3. Taken from Sixteen Steps to Corporate Leadership and Excellence (TMT inhouse, 1993)

(1) MASTER FOODS K.K.

360

(2) ARTHUR ANDERSEN AND COMPANY.

360

(3) FIRST INTERSTATE BANK.

360

(4) BAYER YAKUHIN, LTD.

361

(5) CIRRUS LOGIC K.K.

361

(6) UDDEHOLM K.K.

361

(7) CHEMICAL BANK

361

(8) SMITHKLINE BEECHAM CONSUMER BRANDS

362

(9) FALCONBRIDGE (JAPAN) LTD.

362

(10) CHURCHILL LIVINGSTONE JAPAN K.K.

362

(11) SWISS VOLKSBANK

363

(12) GENERALE BANK

363

(13) ZURICH INSURANCE COMPANY JAPAN BRANCH

364

(14) OVERSEAS BECHTEL INC.

364

(15) INCHCAPE (DODWELL) PACIFIC LTD.

364

(16) COSA JAPAN K.K.

365

(17) ATLAS COPCO K.K.

365

(18) ALEXANDER AND ALEXANDER of JAPAN INC.

365

(19) HUSKY CORPORATION

366

(20) INDUSTRIAL DEVELOPMENT AUTHORITY, IRELAND

366

(21) LEO BURNETT-KYODO COMPANY LTD.

366

(22) KLA JAPAN

367

(23) CREDIT AGRICOLE

367

(24) JAPAN GAMMA ASSET MANAGEMENT LTD.

367

(25) DATA I/O

368

(26) PHILIP MORRIS K.K.

368

Part 7: Good communications to improve teamwork and assist implementation

369

1. A Little Background on Understanding the Context of 12 TMT Rules and Guidelines

373

2. Taking Charge with the 12 TMT Rules & Guidelines

374

3. Some Keys to Better Communications, Smoother Human Relations, Better
Team Work and Results

388

Part 8: Toward identifying and recruiting the best and the brightest in Japan

393

1. Can You Recruit and Hire the Best and the Brightest? — Our bugle call to action!
(with Recruiting Trends in Japan).

397

2. Twelve Tips to Make Sure We Hire Only Champions (Other than one Japan specific
point, these tips work everywhere).

401

3. The Truth About Executive Search in Japan
Q and A on Executive Search Relationships in Japan — Why the Unique TMT
Approach of Responsible Mutual Commitment is Essential to Your Success

404

Part 9: The primary focus on staff reduction and downsizing

409

(But maybe the primary focus should not be there). Training and motivation, as part of change management and preventive maintenance, can help the organization and people in the aftermath of downsizing or other changes in pay and benefits. The 16 Steps, Thomas J. Nevins Seminar Training Series and its background is introduced. The 45 key words with insights from great thinkers and achievers make up the 45 chapter titles of another book written by Mr. Nevins. The book is not Japan focused and is useful for anyone anywhere. It aims to help us and our staff live and work better. This book ‘Know Your Own Bone,’ is written for, and useful for employees and managers at all levels. Highlights and summaries are translated into Japanese. There is also Japanese language reference to the book and to personal and corporate development seminars in Part 14.

1. Step by Step on How to Carry-out a Strategic and Morale Boosting TMT Style Staff
Reduction

413

2. Going Beyond Downsizing/ “Outplacement” in Japan

418

3. A Memo that Saved Billions Yen

420

4. A Painless Approach to Downsizing

425

5. Why U.S. Style Downsizing/Outplacement is the Wrong Strategy in Japan

427

6. There is nothing training cannot do. Nothing is above its reach!

429

7. The Thomas J. Nevins Sixteen Steps Modules

430

8. The Sixteen Modules – Steps to Corporate Leadership and Excellence

431

9. 企業発展と卓越したリーダーシップをとるための16ステップ

461

Part 10: Some diagnostic tools to help you reach a decision toward taking action.
More on TMT’s Rules of Employment solution.

463

1. Ten Criteria for Selecting a Human Resource Consultant in Japan

467

2. (Introduction to) TMT Personnel Management Manual
Guidelines and Pointers for Better Managing your Japanese Staff — How to Interpret,
Apply and Maintain your Personnel Policies and Systems

470

3. Reasons For and Against Investing in New Rules of Employment and
Personnel Management System with Five-Year Consulting Support
(“Strategic Partnering”)

479

4. Twenty Question Check List for Expatriate Executives in Japan

482

Part 11: Preface and table of contents of “Labor Pains and the Gaijin Boss” and
“Taking Charge in Japan”

489

Preface and table of contents of Japan Times books: “Labor Pains and the Gaijin Boss” (1984), “Taking Charge in Japan” (1990). There is all different content, in many ways more complete information, and equally fresh insight in these earlier works. Books are available from TMT.

1. Labor Pains and the Gaijin Boss (Japan Times, 1984)

493

2. Taking Charge in Japan (Japan Times, 1990)

501

Part 12: 63 True or False Answers

519

It might be interesting to first try and answer these questions also in Part 1, and then compare them to my answers in this part. If we ever work together, this comparison may be of reference to better understand our assumptions, mind-set, and where we respectively are coming from. Some of these questions are clear-cut. With others, my answers may seem to differ from a traditional, stereotyped, textbook answer. It may be easier for many Japanese lawyers, your Japanese top management, or your personnel manager, to more readily endorse this textbook answer. Except for simple, clear-cut issues of statutory regulation, it can rarely be unequivocally said that something is ‘legal’ or ‘illegal’. The word is often, and understandably loosely used, when more complete and precise communications are not possible. Most of the important issues that come up are subject to interpretation, with wide, deep swaths of gray. With personnel issues and labor relations in Japan, sometimes what is thought to be easy, risk-free implementation ends up being too costly and damaging to your people and your business. The risk assessment is fundamentally flawed, and a lack of knowledge and experience of other possibilities and a better way, results in bad judgment and poor results. Some creativity, better strategy and tactics, more explanation, apology and time spent in properly communicating with all staff, are elements that are often missing. A sincere, careful, and heartfelt communication process with the necessary content will also result in smoother, faster implementation, more effective results, happier people, and higher morale at the company.

1. 63 True or False Questions on Human Resource/Personnel Issues Answers

523

2. 63問の人的資源/人事に関する「ウソかホントか」問題への答

548

Part 13: French language articles

577

A bit old, but this French language subject matter is particularly timeless. The French Chamber of Commerce asked me to write up in English a speech I delivered for them on December 14, 1989 at the Capital Tokyu. I had made a similar presentation a month earlier on November 16 at the International House. The French Chamber took the trouble to translate my paper, and the French version appeared in the Spring and Summer 1990 issues of their excellent quarterly magazine, Japan Eco. The English original is Part I, “Recruiting-Everyone’s Bottleneck to Success,” from my “Taking Charge in Japan” book, Japan Times 1990. This also serves as a reminder that although English is the dominant language of business, only a very small percentage of us are lucky enough to be native speakers. Probably only 30% of the foreign capital firms TMT serves are originally from countries where English is the native tongue.

Part 14: About TMT and Thomas J. Nevins

601

The April 2, 2002 Foreign Correspondents’ Club of Japan Speech Announcement, Japanese Asahi Shimbun/Newspaper coverage referred to in Part 2 of this book, ‘Observations and Key Points’, and other Japanese magazine media coverage, and Japanese language materials, that introduce TMT for Japanese readers. More on the 16 Step Thomas J. Nevins Seminar Trainings is in English at the end of Part 9. The 45 key words with insights from great thinkers and achievers make up the 45 chapter titles of Mr. Nevins partially bilingual book, ‘Know Your Own Bone’, to help us and those around us lead happier and more fulfilled lives.

1. Announcement of Speech at The Foreign Correspondents’ Club of Japan on April 2,
2002.

605

2. Article in Asahi Newspaper on April 13, 2002.

606

3. More detail on above speech as written by Thomas J. Nevins

607

4. Japanese language introduction to Mr. Nevins “Sixteen Steps” seminar training
program. (Organized for single corporations, not open, public seminars)

608

5. Japanese language overview of TMT’s business

610

6. Japanese article originally appearing in Venture Link magazine

615

7. Japanese article from TRENDS magazine

620