JOURNAL
THE AMERICAN CHAMBER OF COMMERCE IN JAPAN

Volume 59 • Number 1 • ¥1,000

INTERVIEWIn Defenseof Strong
Relations
ACCJ President Om Prakashshares his thoughts on 2022
and the chamber
SPECIAL FOCUS

Workstyle Reform
WORKPLACELife Beyond Covid-19

Professionals, graduates, and new hires share
how workplace expectations have changed
HR

Stepping Up for Change
Companies move quick as talent
expectations evolve
MANAGEMENT

Motivate Remotely

Keeping your team engaged in a world
where hybrid workstyles are the norm
TALENT

The Great Resignation
Could the change Covid-19 sparked in
the United States occur in Japan?

Photo: Miki Kawaguchi/LIFE.14

THE VOICE OF GLOBAL BUSINESS IN JAPANPRESIDENT

Om Prakash

5Northrop Grumman JapanCHAIR

PUBLISHER

Crossing
the Bridge

6

A quarter of the way into 2022, thetransition to the new normal feels real

Eriko AsaiEXECUTIVE DIRECTOR

Reflection
and Optimism

While challenges remain, the future ofbusiness in Japan looks bright

GE Japan
TREASURER

8

Ryann Thomas
PwC Tax Japan

INTERVIEWIn Defense ofStrong Relations

14

ACCJ President Om Prakash shares histhoughts on 2022 and the chamber

VICE PRESIDENTS

Douglas Hymas Fusion Systems GroupINNOVATION

HxDWinners

Five healthcare competition finalists showthat innovation is alive and well in Japan

Amy Jackson Johnson & Johnson Family of Companies
Jiro Kawakami (Kansai) MGM Resorts Japan LLC
Robert W. Roche (Chubu) Oak Lawn Marketing, Inc.
Eric W. Sedlak K&L Gates Gaikokuho Joint Enterprise
Yoshitaka Sugihara Netflix G.K.
Dave West Cisco Systems (USA)
GOVERNORS

Andrew J. Conrad Aflac
John W. Carlson III Novartis
Nuala Connolly AIG Japan Holdings
Harry A. Hill Better-U, Inc.
Mark Hosang (Chubu) Randstad K.K.
Tad Johnson Pratt & Whitney Aftermarket Japan KK
Saori Kanno REVLON K.K.
Mari Matthews The Bank of New York Mellon Trust (Japan), Ltd.
Heather McLeish EY Japan
James Miller Amazon Web Services Japan G.K.
Victor Osumi Delta Air Lines, Inc.
William Shaffer Boeing Japan K.K.
William J. Swinton Temple University, Japan Campus
Simone Thomsen (Kansai) Eli Lilly Japan K.K.

28

Life Beyond Covid-19

SPECIAL ADVISORS

Christopher J. LaFleur

Professionals, graduates, and new hires share
how workplace expectations have changed

McLarty Associates
Jenifer Rogers
Asurion Japan Holdings G.K.
ACCJ EXECUTIVE STAFF

Laura Younger

20

Executive Director
THE ACCJ JOURNAL

Leveraging
Lessons Learned

22

Building an innovation ecosystem for ahealthier, more secure future

Christopher Bryan Jones
Publisher and Editor-in-Chief
To advertise or subscribe: comms@accj.or.jp

HEALTHCARE

24

The American Chamber of Commerce in Japan
Masonic 39 MT Bldg. 10F, 2-4-5 Azabudai

HR

Stepping Up
for Change

36

TALENT

The Great
Resignation

32

Disclaimer: The ACCJ will not accept liability for any damages caused by thecontents of The ACCJ Journal, including, but not limited to, any omissions, errors,
facts, or false statements. Opinions or advice expressed in the The ACCJ Journal
are not necessarily those of the ACCJ.

42

FOOD

Ramen
Romance

A flavorful world of history andinnovation awaits you in Yokohama

MANAGEMENT

Motivate
Remotely

Keeping your team engaged in a world
where hybrid workstyles are the norm

41

LEADERSHIP

Spiritof Yozan

How a samurai reformer inspires a
new generation to take the lead

Could the change Covid-19 sparked in
the United States occur in Japan?
The ACCJ is an independent membership organization not affiliated with any
government or other chamber of commerce. The ACCJ is a member of the Asia–
Pacific Council of American Chambers and values its relationships with Japanese,
American, and other nations’ business organizations.

Japan Surprises
2022

Jesper Koll suggests five possible twists
and turns in the Year of the Tiger

Companies move quickly as talent
expectations evolve

Minato-ku, Tokyo, Japan 106-0041
Tel: 03-3433-5381 n Fax: 03-3433-8454 n www.accj.or.jp

REFORM AND CHANGE

45

TAXATION

Trustsand Audits

How changes to Japan’s tax rules
may impact individuals

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The ACCJ Journal on the go!

PUBLISHER

By C Bryan Jones

Crossing
the Bridge

5

A quarter of the way into 2022, the transition to the new normal feels realA

lot has happened during the three months
since the last print edition of The ACCJ Journal
was published. The landscape of global business—still littered with obstacles from the ongoingcoronavirus pandemic, but making positive strides
toward recovery—has been shaken again by the
conflict in Ukraine.
As the editor of this magazine, the business
impact is very much on my mind. Due to the conflict,
we have seen many companies pause or end theiroperations in Russia, a move not even on their radar
just months ago. This sudden shift will, no doubt,
send ripples through global business, as resources,
supply chains, travel routes, financial transactions,and more are disrupted.
We’re already seeing some of that impact, but I
am confident that our community will weather thestorm and find ways to help where possible.

Workstyle Reform
With that positive view in mind, I’d like to share more
about this issue’s content. For most of the past two
years, we’ve been writing about overcoming the challenges of the pandemic. While the threat of Covid-19
continues, and will likely remain with us for a longtime, we’ve adapted and are learning how to function
and flourish in a changed world. This includes adjusting how we work.
Workstyle reform is a bridge that some companies
had been afraid to cross. When you’re comfortableon one road, after all, why change to an unfamiliar
route? But with workers now accustomed to the better work–life balance afforded by working from home,
flexibility is expected and companies must adapt to
attract and retain top talent.
To explore this new reality, we’ve put together
four features that focus on various aspects of workand the expectations now shaping the path to success. On page 24, we speak with experts to learn whatissues are key to hiring in 2022 and beyond, while on
page 28 we talk to professionals and new graduates
about what they are now looking for in an employer.
Then, on page 32, we offer tips on how to keep yourteam engaged in a world where hybrid workstyles are
the norm. Lastly, on page 36, we ask whether Japan
could experience a Great Resignation—that revolt

against traditional workstyles that Covid-19 sparked
in the United States.

More Inspiration
While workstyle reform is our theme, we certainly
cover additional ground. For me, this has been a very
interesting issue to prepare as a writer. I got to visit
American Chamber of Commerce in Japan (ACCJ)
President Om Prakash at the Northrop Grumman
office to talk about a range of topics (page 8), and I
learned about some incredible innovation on the
medical front as I recapped the second annual ACCJ
Healthcare x Digital (HxD) competition, whichbrought together startups and entrepreneurs with
top pharma executives.
Starting on page 14, you’ll see how the five HxD
finalists showed that innovation is alive and well inJapan. I was particularly impressed by Moonshot
Prize winner Ayush Balaji, an 18-year-old from Japan
who is a first-year medical student at the University
of York in the United Kingdom. While still a highschool student in Japan and inspired by the circulatory
system of the octopus, he came up with a way to assist
people with heart failure. Watching his presentation
truly inspired me and reinforced my belief in thepotential of the human race—something I very muchneeded in the face of the conflict playing out in Europe
as well as other ongoing struggles around the world.

C Bryan Jones
Publisher andeditor-in-chief
cjones@accj.or.jp

Digital Journal
There’s one other bridge that we’re crossing, and I’dlike to invite you along for the journey. In the December issue, I shared that The ACCJ Journal would be
moving to a digital format with quarterly print editions,of which this is the first.
We have a new home for The ACCJ Journal online,
which you can find at journal.accj.or.jp, designed tomake it easier to explore and share. We’ve begun publishing digital-only content that highlights members,committees, and chamber advocacy, and have someexciting opportunities available. If you are a committee leader looking to raise awareness of a timely topic,
a member wanting to share your business experiencesin Japan, or if you have an idea for a story, I’d love tohear from you. Feel free to reach out to me any timeat cjones@accj.or.jp. n

Listen to this story
journal.accj.or.jp/podcast

THE ACCJ JOURNAL • VOL. 59 • NO. 1 • SPRING 2022

EXECUTIVE DIRECTOR

By Laura Younger

Reflection
and Optimism

6

While challenges remain, the future of business in Japan looks brightA
Laura Younger
ACCJ
executive director

fter the challenges of the past two years, I
was looking forward to using my column,in this first print issue of 2022, to highlightthe incredible resilience shown by our members andthe bright road, filled with potential, that lies ahead
for the American Chamber of Commerce in Japan(ACCJ) this year. That’s still what I’d like to share, but
I would like first to acknowledge the events unfolding in Ukraine and the resulting humanitarian crisis.
Our thoughts are with those in the region, including
the people who some of our member companies haveon the ground there. As the situation continues to
evolve rapidly, we know that more uncertainty andmany challenges may lie ahead for us all. The ACCJ
will continue to do our utmost to support our members and member companies in all that they do.

Virtual events have not only been critical to thismomentum but have also allowed us to strengthen
our One ACCJ initiative, which aims to bring ourthree chapters—Chubu, Kansai, and Tokyo—together
and extend opportunities to everyone across theregions. And that momentum goes beyond Japan, too,
as our collaboration with the National Association ofJapan–America Societies has received a boost.
But, as beneficial as these events have been,
we are all itching to meet in person once again.
Networking at live events is an important benefit ofchamber membership, and one that President Om
Prakash, the Board of Governors, and I are eager tobring back—bit by bit and in the safest way possible.
We already have some large events lined up for the
coming months, and you’ll notice that more andmore hybrid events are appearing on the calendar.

OVER THE PAST SEVERAL MONTHS, TALKING TOLEADERS OF COMPANIES LARGE AND SMALL, I HAVEFOUND THAT THEY ARE FAIRLY OPTIMISTIC ABOUT THE
PROSPECTS FOR THIS YEAR.

Listen to this story
journal.accj.or.jp/podcast

Maintaining Momentum

Government Dialogue

It is with this in mind that I would like to pause andreflect on the journey we’ve been on and look ahead
with positive energy.
Over the past several months, talking to leadersof companies large and small, I have found that they
are fairly optmistic about the prospects for thisyear. They are hopeful about moving forward andgetting on with business. Of course, there are challenges—supply chains, travel—but there is a feelingthat these can be overcome as the ongoing pandemic
evolves into a new normal.
Despite two years of frequent quasi and full statesof emergency that have greatly disrupted business inJapan, the chamber and its committees have done astellar job of maintaining momentum and activity.
We owe all the committee leaders and members enormous gratitude for their tireless efforts to keep the
ACCJ strong through these challenging times. In fact,
we have even gained members during a period which
could have caused companies to pull back from wider
engagement as they looked inward for survival.

We are also looking forward to greater engagementwith the Japanese and US governments. Our advocacy efforts regarding travel and entry restrictions
have been a top priority and have received greatinterest from and coverage in Japanese-language

THE ACCJ JOURNAL • VOL. 59 • NO. 1 • SPRING 2022

media. We are committed to continuing our efforts
in this area to help our member companies.
The US Embassy Tokyo have been supportive inthese efforts, and we are excited about the opportunity to work with Ambassador Rahm Emanuel in themonths and years to come.
We also hope to return to Washington this year
for a DC Doorknock and resume our previously annual visit to meet with members of Congress and theadministration, as well as officials from various government agencies. Covid-19 curtailed this important
activity for the past two years, but it is great to feelthe momentum both here in Japan and in DC as ourplanning gets underway for the next one.

7

New Opportunities
The digitalization spurred by the pandemic has alsobrought new ways for us to communicate with andsupport members. Bringing The ACCJ Journal inhouse has given us more opportunities for members
to share and showcase their achievements, and for
us to spotlight their expertise, through a refreshedapproach to our digital and print content.
And through our broader communications efforts,
we have also reached new demographics and drawn
increased attention to our activities from those outside the chamber.
New initiatives such as member profiles in thedigital Journal and the President’s Shout-out, inwhich Om highlights members, are examples of how
digital is providing flexibility that allows us to better
connect and accelerate our responsiveness.
To help member companies search for and recruit
the best talent, we have launched the ACCJ Job Board.
Now active on our website, this is a great place tolook for your next role in Japan’s international
business community and for companies to identify
highly skilled talent to join their team. It’s easy andaffordable to post openings and harness the power ofthe ACCJ network.

To Success
While the pandemic stretches on and geopoliticalconflict presents added challenges around the world,
I’m confident that the energy and agility that has
allowed the chamber to thrive even during these
difficult times will continue—and reach new levels—
this year. We’re already off to a great start, and theenthusiasm of Om and the Board of Governors, aswell as the leaders of our committees and member
companies, makes me certain that we are turning
the corner and easing into a prosperous new world.
Lastly, we very much want to have an increased
dialogue with our members this year. I encourage
you to contact me—as well as the ACCJ team—to
share your ideas, tell us what you need, and let us
know how we can help you grow your network andimprove your business. n

WELCOME TO
OUR NEW
MEMBERCOMPANIES
Corporate Sustaining Members

Nissan Motor Co., Ltd.
Thomson Reuters
Commercial Members

Baker Hughes Company
Dentons Global
Advisors - Albright
Stonebridge GroupEPP Capital
L3Harris Technologies
Minato International
Accounting Office/Accounting IntelligenceNielsen JapanNPD Japan Ltd.
Weber Shandwick

THE ACCJ JOURNAL • VOL. 59 • NO. 1 • SPRING 2022

INTERVIEW

By C Bryan Jones • Photos by Miki Kawaguchi/LIFE.14

In
Defenseof Strong
Relations
ACCJ President Om Prakashshares his thoughts on 2022
and the chamberThose movies in which a fighter pilot steps into the role of president
and leads everyone through challenging times are always inspirational.
I’ve watched that story more than once, and as 2022 began I got tointerview someone doing just that. Only not for Hollywood.

American Chamber of Commerce in Japan (ACCJ) President Om Prakash, also
chief executive of Northrop Grumman Japan, is a US Air Force veteran who wasa fighter pilot, test pilot, and vice wing commander of the 82nd Training Wing.
His time in the service, as well as at the Pentagon, has given him important
perspectives on the US–Japan relationship, experience ideal for guiding thechamber through the third year of the pandemic and bilateral challenges.
In a year filled with opportunities in a transformed world, The ACCJ Journal sat
down with Prakash at the Northrop Grumman office to learn more about his
background and thoughts on the path ahead.

THE ACCJ JOURNAL • VOL. 59 • NO. 1 • SPRING 2022

9

THE ACCJ JOURNAL • VOL. 59 • NO. 1 • SPRING 2022

10

What brought you to Japan?
I have lots of reasons to want to be here, but ultimately, I am here
for my job. My company asked me to come here. But part of it isthat I have a background that put me in a unique position to beparticularly effective for the company. I studied engineering at
MIT, and then served in the US Air Force for about 26 years. Early
in my career, I was stationed in Aomori Prefecture, at Misawa Air
Base. I was an intelligence officer back then, and that is the firsttime I lived in Japan for an extended period.
I spent most of my career as a pilot and test pilot in manyof the United States’ worldwide operations over the past few
decades. I gained a lot of experience working with Japan as anally, including some time in the Pentagon, where I worked on
industrial policy issues and with Congress. Previous to coming
here, at Northrop Grumman, I focused on corporate and technology strategy. So, combat experience, a background in technology,
and lots of policy experience with the government made me avery good match for taking over our operations in Japan, where
our primary customer in the Japanese Self-Defense Force.
How did you get involved with the ACCJ?
Our company has been part of the ACCJ for several decades—wewere one of the early members—so I was a member as our chief
executive. Northrop Grumman is a defense company, so the
Aerospace and Defense Committee was the one I had the mostinteraction with, most recently as chair. To me, the primary things
the ACCJ does for its community are:
 Networking, getting to know other folks in the community Interaction with government to work on advocacy and clear
opportunities for business in Japan
Those were the two main drivers that give me passion forbeing involved with the ACCJ.
Has ACCJ membership helped push policy goals?
Yes, absolutely. There are some areas where, across sectors, we
all agree. One of the most obvious, in the current situation, is thatTHE ACCJ JOURNAL • VOL. 59 • NO. 1 • SPRING 2022

we all have been affected by the travel restrictions. That common
voice from the ACCJ has been important in showing the pain
brought to all types of businesses and in bringing about change.
Specific to aerospace and defense, with the other US companies, there are several times that we have had common ground towork on advocacy issues together. We’ve also had opportunities
to talk with leadership from the Ministry of Defense and gain
insight into their priorities for defending Japan. This year will be
particularly interesting for aerospace and defense because Japanis in the midst of rewriting its national security strategy. It’s going to be a really important year.
Has the chamber helped you?
On a professional level, I’ve known most of the folks in the aerospace and defense community already, but the ACCJ certainly
broadened my network to other sectors. On a personal level, I
love learning. I am curious about everything. So, getting to know
more about the industries that are involved in Japan writ large
has been both interesting and helpful. I’ve gained insights into
the pain points faced by other industries. The pandemic hasbrought lots of opportunities for US businesses to share lessons
learned and look for common support. And then, quite frankly,
I’ve enjoyed making friends in the ACCJ, as well as participating in community events. In my first year here, I was able to go
to the Charity Ball in person. It’s been virtual for the past two
years. That was rewarding and fun at the same time.
Do other experiences stand out?
Well, the election has been pretty involving for me! It actuallywasn’t something I was seeking—the Nominations Committeecame and asked me to run—but it is my nature to always raise
my hand and volunteer; and in this case I was especially happy
to do so. Frankly, this is an exciting year we have in front of us,
so I am thrilled at the opportunity. Going through that process
gave me access to an even wider group of people, and learning
more about how the chamber works to serve its members has
been rewarding and fascinating. I’m sure it will be topped by theactual experience itself in the year ahead.

Why did you choose to take on the role of president?
In many ways, it’s a variation on the question of why I came to Japan in the first place. When I look across the globe at where there
is potential for conflict, and where there are real issues between
nations, it’s right here in this part of the world—who would haveexpected a land war in Europe? Think of what that means for us
here, where tensions and stakes are in many ways much higher.
I’m the type of person who likes to run towards a burning building, not away from it, to see what I can do. I feel very strongly
that, if you look at the alliances across the world, the US–Japan
alliance is the most important in all facets—military, economic,
cultural—so, being a part of that for my company was something
I was excited about doing; it felt like a continuation of my Air
Force career. The ACCJ is a whole other level of that.
This year, in Japan, we have the administration of Prime Minister Fumio Kishida making major policy changes. There’s a newminister for economic security. They’re rewriting the national
security strategy, the National Defense Program Guideline,
which is going to govern how they spend the largest discretionary
portion of their budget.
In the United States, we are still going through a full transition to our new administration. And we now have an ambassador
in Japan, Rahm Emanuel. That’s going to make it a particularly
dynamic and important year. There are lots of opportunities for
the ACCJ to make a positive impact on the US–Japan relationship, do good things for business, and, more importantly, dogood things for both our nations.

economic security. That will have economic implications forseveral sectors, and we need to look clearly at how the ACCJ can
get involved in making a case for things that will help both our
economies and national security postures.
How is diversity and inclusion in Japan? Can the ACCJ help?
In Japan there is, of course, improvement to be made. That’s notjust my opinion, there are many surveys and analyses of Japan’s
economy and its record with inclusion—specifically related to
women in the workforce. With an aging population, that’s an untapped potential resource. Coming from the United States also
influences how I feel about the topic. When you get a diverse
set of folks together, you get a better product no matter what it
is you’re working on. The ACCJ should continue its advocacy inthis area, and we have many examples of where inclusion has
brought great outcomes.
How can the ACCJ best support members in 2022?
It’s hard to predict what the year will bring. I look at the term
Jenifer Rogers served as ACCJ president last year, and the challenges she faced. We didn’t expect that the pandemic would
continue as it has for another entire year. Right now, we’re on
the Omicron variant, and there are still nine letters left in the
Greek alphabet. I hope we have a better future in front of us. I’dreally like to see 2022 be the year that we return to networking
and meeting each other at in-person events. I think we cravethat human connection on many levels, not just for the business

I FEEL VERY STRONGLY THAT, IF YOU LOOK AT THE ALLIANCES ACROSS
THE WORLD, THE US – JAPAN ALLIANCE IS THE MOST IMPORTANT IN ALL
FACETS — MILITARY, ECONOMIC, CULTURAL — SO, BEING A PART OF THATFOR MY COMPANY WAS SOMETHING I WAS EXCITED ABOUT DOING.
What is the focus for 2022 bilateral ties?
All nations have suffered impacts to their economies as a resultof the pandemic, and there are probably inclinations to lookinward. But these are the times when we need to rely on friends
more than ever, and the United States and Japan have a special
relationship. There have been periods in our history when we’ve
viewed each other with less than cooperative eyes, and othertimes when things have been more open. I believe right now,in particular, we have to make sure we keep pushing for what’s
good for both economies. It’s not just a one-sided thing for theUnited States; I think we can thrive together. It’s not a zero-sum
scenario. We can grow opportunities for all. And when we lookat some of the nation states that are potential adversaries, we
can only succeed by cooperating and combining our strengths.
What are the ACCJ’s key initiatives and advocacy points?
Last year, we spent a lot of time focused on digital transformation; and there is still work to be done. I think that will be critical for tying the US and Japanese economies together. There islots of work on regulatory frameworks and common operating
standards, and a level playing field that we need to have in placeso that our businesses can thrive. We can work together. That
will be an ongoing topic for some time.
Something that I think will be new in 2022 is having our
voice heard as Japan works on its national security strategy andimpact, but socially for our well-being and effectiveness. I hope
we’re going to see that in 2022. But if not, we’ve learned a lot
over the past two years and will continue to improve our effectiveness as a chamber.
What have we learned from the ACCJ’s digital transformation?
We have definitely learned how to run meetings more effectively
using all the telework software that’s available, and we can carrythat over to our businesses. My personal experience is that ACCJ
meetings have run very smoothly. As we have more potential tohost hybrid events, we need to be mindful that these come with
their own consequences, for example in terms of staff needed to
run them. So, we’re going to have to look at when it makes sense
for an event to be hybrid versus being only virtual.
We’ve also learned that there are lots of things we felt we
could only do in person but, having no choice, now do virtually.
And now that we have a choice, let’s not forget the good things
we’ve learned from hybrid and virtual scenarios, especially interms of how much more inclusive we can be. Obviously, we
don’t want the entire structure to be online-only all the time,
but there are times when it makes absolute sense.
If we were hundreds of years in the future, there are a lot ofthings that maybe would be a given for how we do business. We
had to get there a lot sooner, because we had no choice, which
isn’t a bad thing. So, we’ll continue to evolve.

THE ACCJ JOURNAL • VOL. 59 • NO. 1 • SPRING 2022

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It what ways might changes to the ACCJ Constitution benefit members?
I know that Jenifer and the team last year focused alot, as an advocacy issue, on governance reform inJapan. They reinforced that inside the ACCJ withreform of the chamber’s governance. I think that was
the perfect example to set. Additionally, making thechamber efficient and able to represent and serve its
membership is critical. I applaud the team last year

those of other nations looking to revitalize their economies. I think framing our advocacy in those terms
will be more helpful.
Ultimately, however we come out of this, there
will be a certain degree of feeling that we learned
something as a species that we’re not going tounlearn. Maybe our tolerance to risk and how we approach decision-making have been forever changed.
From what I understand of the 1918 flu pandemic,

HAVING THOSE SPIRITED DEBATES, WHERE WE LEARN FROM ONE
ANOTHER AND SO ATTAIN BETTER OUTCOMES, THOSE ARE EXCITING
THINGS TO BE A PART OF.
for taking on a topic that is challenging, because we
all have strong feelings. That’s one of the great things
about the ACCJ. We are a volunteer group for themost part, so we’re putting in our time for things wefeel passionate about. I look at those as great developments last year.
What might be the long-term effects of Japan’sborder restrictions?
Sometimes, when we consider this question, we may
be too narrow in our thinking. There’s a political dynamic across the globe. Governments are responsive
to their constituencies. If we look at it simply as abusiness issue or a science issue, we’re sometimes
going to miss and talk past each other when we’retrying to be effective.
I feel the key when we talk about advocacy regarding entry restrictions is to focus on the business
impacts. They are real, and some of them will be longterm—especially when you consider things on a global
scale and juxtapose the decisions made here withultimately, you could say that it ended socially wellbefore it came to a scientific end. It was more a change
in our thought pattern for what risk we were willing toaccept and how we were willing to operate. I won’t be
surprised if we see something similar with Covid-19.
Anything else you would like to say to members?
It may be recycling something I said earlier, buteveryone I’ve met in the chamber—especially thoseserving in positions of responsibility on the Board ofGovernors and as committee leaders—are so passionate about what they do. And that’s a great group ofpeople to work with. We’ll have our differences, but
we’re professionals and we’ll work through things.
Having those spirited debates, where we learn fromone another and so attain better outcomes, those are
exciting things to be a part of. As I said, I didn’t seek
this position, but I’m super excited about leading thechamber, especially given the events going on aroundus as a community, in the United States and Japan,
and around the globe. n

Listen to this story
journal.accj.or.jp/podcast

THE ACCJ JOURNAL • VOL. 59 • NO. 1 • SPRING 2022

INNOVATION

By C Bryan Jones

14

HxD
WINNERSFIVE FINALISTS IN THE
ACCJ’S DIGITAL HEALTHCARECOMPETITION SHOW THATINNOVATION IS ALIVE AND
WELL IN JAPANAs we enter the third year of the coronavirus pandemic, two societal needs
have become crystal clear: healthcare and digitalization. These could be seen
as distinct domains, and in some respects they are. But the combination of thetwo could bring some of the most impactful changes to Japan and the world byimproving the quality of life, reducing the cost of care, and allowing society tobetter cope with future crises.
Bringing them together is exactly what the American Chamber of Commercein Japan (ACCJ) has done with its Healthcare x Digital (HxD) initiative, whichbegan in 2020 and reached new heights in its second year. HxD leaders
Torsten Kanisch, Francisco Proaño, Christian Boettcher, and Yasuhiko Iida,with the support of the ACCJ’s Kansai chapter, followed up the very successful
inaugural competition by boosting submissions 30 percent.

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15

Hiroki Yamada
CEO
Medii, Inc

Goals
Ideas Day 2.0
Forty companies submitted entries and 10 wereselected to participate in the Pitch Day virtual eventon October 14. Five finalists then took part in the HxD
Ideas Day on November 11, a hybrid in-person andvirtual event with a panel of leading healthcare andpharmaceutical executives—all empowered to initiate business deals and new relationships on behalf of
their global brands.
Opening remarks were delivered by AstraZeneca
K.K. Representative Director and President Stefan
Woxström, who welcomed the more than 300 online
attendees and many others who attended in person.
After thanking the healthcare professionals andcompanies working to develop solutions and carefor patients during the pandemic, he shared a bit ofInnovation Infusion Japan’s background.
Known as i2.JP, the open innovation initiative
connects healthcare professionals, local governments,
academia, and private companies, helping themjointly work out collective, practical, and optimal
answers to issues in the field of healthcare. The initiative was founded in 2020 and has rapidly grown fromseven participants to 130.
“I want to emphasize that this is an open innovation network: anyone can join, it doesn’t matter
where you are,” Woxström said. “You don’t have tocollaborate with those who started the network, you
can collaborate with anyone. That’s the beauty of it,
and that’s why it is also starting to produce a lot ofsolutions for patients.”
He also noted that i2.JP has become a gateway
through which startups are entering Japan. “Because
they don’t know where to go, who to connect with,they contact i2.JP and find partners who help themcome to Japan with their solutions.” He hopes it willflow the other way as well, with i2.JP assisting Japanese startups as they branch out globally.
Setting the stage for the finalist presentations,
Woxström said: “What we are going to experience
today is what happens when startups, academia, theprivate sector, and policymakers come together andstart working, because that is what is going to create
new solutions for the future of healthcare in Japan.”Then-ACCJ President Jenifer Rogers spoke next,
noting that HxD Ideas Day is “the culmination of amonths-long efforts by healthcare leaders and innovators with a shared mission: to solve critical healthcare challenges and improve the lives of patients.”
HxD 2021, she explained, advances the goal ofdriving innovation in Japan’s healthcare ecosystem
by focusing on three areas:

Hirokazu Sugihara
CEO, representative director, andpresident
Immunosens Co., Ltd Overcoming the urban–rural healthcare divide Reimagining the hospital of the future Empowering patients to own their healthcare“These areas tie into the digital transformation of society and can help Japan continue to takecare of—and provide even better care for—all its
citizens,” she added. “Digital transformation [alongwith] sustainable society and healthcare were two of
the ACCJ’s main strategic goals even before the onsetof the Covid-19 pandemic, which has accelerated
the need for digital and healthcare plans around theworld.”
Professor Hiroaki Miyata, of the Keio University
School of Medicine’s Department of Health Policy andManagement, echoed the belief that the pandemic
has driven greater understanding of the need for
digital transformation and sustainable healthcare.
Speaking after Rogers, he wore a shirt that mirrored
the colors of the i2.JP logo, which he said was his wayof honoring the diversity championed by the group.
“The pandemic is a turning point for civilization,” he proclaimed. “Particularly in Japan, in termsof digital, the country had ranked 27th or 28th incompetitiveness around the world and had to face
this situation.”
Noting that Japan, as an island nation, was longisolated from the world, he said that facing thesechallenges and being forced to embrace a connectedworld and digital transformation—to grow together
in this ecosystem—is important. “In that sense, i2.JPand HxD [represent] growing together in the global
environment, so these opportunities are very important for us,” he explained. “And all of you here aregoing to take a new step that is going to be importantfor Japan and the world.”

Tetsuya Nojiri
CEOOishii kenko Inc.

Boubacar Sow
Software developer
and project manager
Lanex Co., Ltd.

Ayush Balaji
Medical student
and creatorof CardioCouple

Listen to this story
journal.accj.or.jp/podcast

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Expert Insight

16

Saving the finalist presentations—the highlight of the day—forlast, the middle section featured a wide range of presentations fromexperts. Five keynotes followed Professor Miyata’s comments:
 Yoshihiko Izumida—a professor in the Saitama Medical
Center’s Department of Endocrinology and Diabetes, as well
as representative director of Saitama Medical and chairmanof the Life Course Design Association—gave a presentation
entitled Global Standardized IoT Platform for Promoting
Open Science Ryosuke Fukuda—deputy director of the Health Policy
Bureau’s Medical Professions Division and director of thebureau’s Planning and Coordination Office for Physician
Training in the Medical Professions Division—talked about
recent topics in online medical care guidelines
 Jun Miyagawa—general manager of Kansai growth strategy
in the Growth Business Development Department of Sumitomo Mitsui Banking Corporation—shared a presentation
entitled Accelerating the Formation of a Venture Ecosystemin the Kansai Area: Trends in Innovation in the Run-up to
the Osaka-Kansai Expo
 Takeru Yamamoto, board director and chief operating
officer at Welby Inc., talked about the current and future
prospects for personal health record platforms
 Lei Liu, PhD, innovation partnerships and i2.JP director ofcommercial excellence at AstraZeneca K.K., recapped theopen innovation initiative’s successes in its first year, looked
ahead to the future, and introduced HxD and its achievements
After the keynotes, a panel discussion involving the keynote
speakers, moderated by Liu, covered current trends in, andfuture prospects for, digital innovation in healthcare.
Next, the five finalists made their last pitches.

Medii, Inc
First to present was Medii, Inc Chief Executive Officer Hiroki
Yamada, a rheumatologist who is himself a patient coping withan intractable disease. His own experience led him to becomea specialist treating arthritis and other musculoskeletal conditions and systemic autoimmune diseases, and to search for a
way to bring better care to patients and support local doctors
across Japan.
Specialist doctors in his
field, he explained, may bedifficult to find outside of thelargest cities. While there are
759 in Tokyo, 32 ofJapan’s 47 prefectures have fewer
than 75. “In termsof the population,
there is a 50-folddifference in the
distribution of
specialist doctors.

We have to do something about this,” he said.
“There are so many undiagnosed patients who are not receiving
proper treatment—they are simply overcoming their symptoms.
This is the challenge we are facing and that we must overcome.”
Medii would like to create a National Intractable Disease
Center so that the latest and most effective treatments can bedelivered to patients. About five percent of the people in Japansuffer from such ailments.
The company’s focus is on the issue of doctor’s knowledge
about intractable diseases, because supporting local physicians
is one of the best ways to help patients.
Medii is offering a service called E-Consult, a digital resource
powered by artificial intelligence (AI) that enables the sharing ofexpertise about rare diseases with doctors who are not specialists.
Doctors in the local community who are trying to diagnose
a problem, but who do not possess knowledge of these rarediseases, can be matched with an expert through E-Consult.
More than 500 specialists are working with Medii to provide
assistance through the service that is a bit like the LINE messaging platform, which is dominant in Japan.
Doctors can be matched on a real-time basis for one-on-one
chats and images can be exchanged securely. A response is received within 42 minutes and the level of satisfaction has beenas high as 93 percent.
“For instance, in the remote islands, the doctor may beworking all on his own, and he has to take care of patients withmany diseases,” Yamada explained. “And yet, by using our platform, even though he may be working on a solo basis, all these
specialists can support him, and better diagnoses and treatments can be offered to his patients.
“We cannot do this alone, so together with the support ofthe pharma companies—and for the benefit of the patients andthe doctors and the specialists—I would like to further growthis platform,” he continued. “Our team is putting all its efforts
into this, and I hope you will all join hands together for thisendeavor.”

Immunosens Co., Ltd.
Next, Hirokazu Sugihara, CEO, representative director, andpresident of Immunosens Co., Ltd., shared his vision for more
efficient testing that can close the time gap between diagnosis
and treatment.
“Our first target is cardiovascular diseases,” Sugihara said. “Asthe Japanese population ages, the number of patients with suchdiseases is on the rise, and treatment accounts for 20 percent of
national medical costs.
“When your condition is poor, you go to a
primary care physician to find out whatis wrong and if there
is a risk of disease,” hecontinued. “Various exams may be performed,
and right now tests areoutsourced.”That time lag—typically one to threedays—can make a

Medii’s E-Consult
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Immunosens’s easy-to-use, disposable sensor is much smaller andcheaper than existing equipment.

big difference in the outcome for patients. At a minimum, it
requires them to make an additional trip to the hospital or clinic
and, in some cases, it may prevent the doctor from providing
proper treatment.
Immunosens’s solution is a high-performance point-of-care
testing (POCT) system that utilizes a technology that the company calls GLEIA, an acronym for gold-linked electrochemical
immunoassay.
This lateral flow test technology uses a printed electrodeto trap disease markers in the sample by immunoreaction
and then sandwich the markers with gold nanoparticles. If a
disease marker exists, it will gather near the printed electrode.
Ultra-sensitive detection of gold nanoparticles on the printed
electrode is achieved through an oxidation and reduction process. This electrochemical measurement can be completed witha single cartridge, enabling quick and efficient measurement with results in just 10 minutes. The easy-to-use,
disposable GLEIA sensor is much smaller and cheaper
than existing equipment, but detection sensitivity is equal
to, or higher than, that of current processes.
The product weighs just 0.1 kilograms and costs
between ¥10,000 for a model designed for home useand ¥50,000 for one aimed at clinics. Compare this withexisting equipment, which weighs 10–100 kilograms,
costs between ¥3 and ¥10 million, and takes as long as twohours to read a sample. Also, current equipment requires
a 100–200 microliter sample whereas the GLEIA solution
needs just 2–20 microliters.
The device for home use allows patients to measure theircondition every four days if they are unstable, or every 23
days if stable. Currently, new measurements are taken once
every six months, on average, at a hospital.
Steady development has been underway since 2018 and“To whom do you turn for help?” he asked. According to thecompany’s research, 85 percent of physicians say that they are
consulted about diet by their patients, and 90 percent of thatgroup admit that they lack the knowledge and time to provide
such guidance. This is where Nojiri feels Oishii kenko can makea difference.
“There is a position called certified dietitian, but 84.4 percent
of hospitals in Japan do not have anyone in this role. So, whilepatients want to improve their dietary life, there is no one whomthey can consult,” he explained.
Oishii kenko believes that dietary management is possible
in the home, and you don’t need a dietary specialist sitting next
to you to make it happen.
“We need to trigger the understanding and desire to eat
healthily, and that is what we want to provide through our personalized recipe and nutrition management app, supervised bya registered dietitian,” Nojiri said.
The AI-powered recommendations provide nutritionallybalanced meal options, and a shopping list is created automatically. More than 60 health issues can be managed through the
10,000 recipes found on the app.
In addition, the app offers previously unavailable insight
into the habits and preferences of people with similar healthchallenges. This is thanks to Big Data from more than 40,000
users that allows nutritional trends to be surfaced.

the first product is scheduled to be launched in the second
half of this year. Mass production is targeted for 2025.

Oishii kenko Inc.
With a name meaning “tasty health,” Oishii kenko’s goalis “to contribute to health and healthcare issues throughdelicious solutions and dietary management,” explained
Chief Executive Officer Tetsuya Nojiri.
Scientific evidence has shown that an optimized diet is key
to reducing healthcare costs, preventing diseases, and supporting the treatment of existing ailments.
But, as Nojiri noted, controlling one’s diet is easier said
than done. He explained that, while 80 percent of Japanesehouseholds prepare their own meals every day, it is challenging
to plan a nutritionally balanced menu. And if you have dietary
restrictions due to illness, doing so becomes even more difficult.

As an example, Nojiri shared that, according to the data,
female diabetics may have a tendency to like spicy food, while
male diabetics eat a lot of meat and dislike fish.
“This is different from the expected behavior of diabetics,
so using real-life data … and based on the preference of theindividual, we can suggest good dietary management tailoredto each person,” he explained. “Through the app, we hope tochange behavior that helps pharmaceuticals to work their best.”

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Lanex Co., Ltd.

18

One example of a traditional practice in Japan that could benefit from digitalization is the maternal and child-health (MCH)
handbook. This printed booklet is used to track the results ofpregnancy and post-birth health checks.
Lanex software developer and project manager Boubacar
Sow shared the company’s electronic version of the process—the E-MCH—explaining that “we empower doctors to manage
data generated during pregnancy through virtual consultation,interoperability, and maternal decision support.”
Under the current system, a woman who is expecting visits
the doctor and receives a document which certifies that she ispregnant. She then takes this paper to the health center at theward office and receives the MCH.
Using Lanex’s E-MCH system, she would register during
her first visit to the hospital and receive a unique identification
number issued by the local government. Login credentials arealso provided so that she can download and begin using thesystem immediately.
At every checkup, data is added to the E-MCH and is accessible via the web portal and smartphone app.
“We believe we have a special system, because it is not
simply a pregnancy tracker, but also an ecosystem to digitizematernal and child healthcare,” Sow explained. “We help the local government provide a unique identification number to better track those who are pregnant. It’s special because we have aknowledge base, the contents of which are provided by maternaland healthcare experts from Miyagi University.”
Lanex, founded in 1993, has offices in Japan, the Philippines,
Australia, and the United States, and has been developing highquality software for more than 28 years. It is targeting countries
that are unable to meet United Nations Sustainable Development
Goal 3: ensure healthy lives and promote well-being for all at all

CardioCouple
Network Design
CC: CardioCouple device
HRM: heart rate monitor

CC

CC
HRM

CC

CC

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ages, as well as every medical institution that provides maternaland child healthcare in both developed and developing countries.
In May 2021, the E-MCH was adopted by the Japan International Cooperation Agency (JICA) as an innovate product tosolve a public problem, and Lanex received financial support
from JICA to conduct a survey in African countries.
The web system requires a small payment by the hospital,
while the mobile app is free for mothers.

CardioCouple
The final presenter was Ayush Balaji, an 18-year-old from Japan,
who is a first-year medical student at the University of York in
the United Kingdom. He came up with the idea for a pulsatile
percutaneous circulatory assist device for those with heart
failure during his last year of high school in Japan.
“I’ve taken inspiration from nature—with animals, such as
octopi, which have branchial hearts—and I looked at adopting aresilient network-based solution to heart failure,” he explained.
Cephalopods have two branchial hearts, one located at thebase of each gill. The two branchial hearts push oxygen-depleted
blood through the gills, thereby supplementing the functionof the systematic heart, which pumps the oxygenated blood
throughout the body. Similar systems are found in insects andother animal species.
“The biggest issue we have at the moment is heart failure,or cardiovascular-related diseases. There are 64 million cases ofheart failure per year [worldwide], and cardiovascular diseaseis the most common cause of death,” he continued. “The only
treatment available at the moment for heart failure is a hearttransplant. Between diagnosis and transplant there is anextended waiting period, and during this time the quality of life
for patients is significantly reduced.”
Balaji has designed a device called the CardioCouple that
focuses on forestalling a reduction in the quality of life between
diagnosis and transplant. The aim is to allow patients to lead
lives that are as close to normalcy as possible.
He noted five problems with current surgical approaches: High rates of infection and complications
 Reduced patient mobility and access Hemolysis complications (destruction of red blood cells)
 Lack of resilience Foreign material contact and proximity to the heart
How does CardioCouple fix this?
A network-based approach uses small pumps in multiple
location around the body to reduce fail rates, provide resilience,and increase mobility. No components come in direct contact
with blood, which increases longevity of the devices and reduces
the risk of hemolysis-related complications. And, while some
surgery is required to implant the devices, major open heart
surgery is not needed.
The result is improved quality of life and outlook, more time
for physicians to plan further intervention, reduced cardiac afterload and stroke risk, and the ability of patients to resume normallife without the need to manage bulky external apparatus.
In terms of digital healthcare, dedicated software allows datafrom the device to be utilized, and physicians and patients tocontrol the device in real time. The pump rate can be managedremotely, and physicians can set operational
limits so that the patient can adjust the pumprate themselves when needed. Plus, physician
access to real-time data on pump performance and patient parameters ensures themaintenance of the device and patient health.
“All these things come together to provide amore reliable, efficient, convenient, and cost-effective device, as it does not rely on significantly new
advances in technology and the complication rate
is not as high as what exists today,” said Balaji.
“This translates to a lower strain on
healthcare budgets, improves profit margins forpharmaceutical companies due to lower complication rates, and provides patients with better
control over their health.”19

Lanex’s E-MCH solution makes data available
via the web and a smartphone app.

Impressive Breadth of Ideas
Following the presentations, Deloitte Touche Tohmatsu LLC
Senior Partner Christian Boettcher moderated a panel
discussion during which the five finalists talked with AstraZeneca’s Woxström and Eli Lilly Japan K.K. President andRepresentative Director Simone Thomsen.
“This year it was very impressive to see the breadth ofideas,” said Thomsen, congratulating the finalists. “I feel thetrue patient-centric passion is coming through, really making
sure that [the focus is on] just one problem and how we canmake it better. I think we are seeing an even greater breadth ofwhat digital technology can do to support Japanese patients.
“As always, I continue to applaud you,” she added. “I know
there is a lot of entrepreneurship needed, a lot of courage, tomake it work. I assume all of you have faced multiple challenges so, by bringing it this far, you continue to impress me.”PrizesIdeas Day ended with recognition of the incredible innovation brought forth by the finalists.

Six honors were given.
 Empowering Patients Award andPeople’s Choice Award: Oishii kenko Inc.
 Hospital of the Future Award:
Immunosens Co., Ltd.
 Bridging Urban Health Award: Medii, Inc From Japan and Beyond Award: Lanex, Co., Ltd.
 Moonshot Award: Ayush Balaji
The winners received monetary prizes and the chance tomeet with senior executives from the organizing sponsors. They
will also receive mentoring and support from healthcare professionals and executives of organizing sponsors.
All who took part in the HxD competition benefited fromhaving their ideas reviewed, and the ACCJ thanks everyone who
submitted pitches. Yet again, HxD proved that there is boundlesshealthcare innovation in Japan, and the 2022 competition is sure
to reach new heights once more. nSponsors
President’s Circle Sponsors

Contributing Sponsors

Supporting Organizations

Cisco Systems G.K.
Eli Lilly Japan K.K.
Google Japan G.K.

DentsuJohnson & Johnson
K&L Gates LLP
Motorola Solutions
NRW Global Business
Omron Corporation
Trilations G.K.
Real Life Sciences
SoftBank Corp.

City of Kobe
Embassy of the United States, Tokyo
Foundation for Biomedical Researchand Innovation at Kobe
Global Venture Habitat
LINK-J
Osaka Innovation Hub

Organizing Sponsors
AstraZeneca K.K.
Bayer Yakuhin, Ltd.
Deloitte Touche Tohmatsu LLC
i2.JP (Innovation Infusion Japan)

Have an idea to pitch? Want to become a sponsor?
Get ready for the 2022 competition with an info packet:

www.accj.or.jp/hxd

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HEALTHCARE

By Hans Klemm

Leveraging
Lessons
Learned20

Building an innovation ecosystem for a healthier, more secure futureS
Hans Klemm
Japan representative
Pharmaceutical
Research andManufacturers ofAmerica (PhRMA)
Vice-chair
ACCJ Digital Economy
Committee

ince the onset of the Covid-19 pandemic, thebiopharmaceutical industry has come together
in unprecedented ways to attack the virus, andwe have achieved incredible progress in just two years.
Working across the global healthcare ecosystem,
biopharmaceutical companies, academia, and the
public sector have harnessed decades of investment,
research, and past discovery to deliver safe and effective vaccines and treatments to patients. As a result,the industry was able to develop vaccines in just 12
to 18 months, and almost 11 billion doses have been
administered worldwide.
To put this success in perspective, it typicallytakes eight to 10 years to develop a vaccine, and theoverall success rate is only 5 to 10 percent.
But our work is far from over. Today, there are
more than 1,700 clinical trials underway globally fortreatments and vaccines to combat the virus. Acrossthe industry, companies are continuing clinicalresearch to assess whether modifications or boosters
are warranted, and to identify further treatments.
We also continue to scale up production facilities
and manufacturing capacity, while working collab-

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oratively on manufacturing to increase the supply of
vaccines and treatments.

Enhance the Innovation Ecosystem
As the pandemic continues, we must build on lessons
learned and prepare for challenges ahead. This begins
with strengthening the innovation ecosystem that led
to the discovery and development of Covid-19 vaccines
and treatments, and ensuring that the healthcare
system is more resilient in the future.
Given the Japanese government’s desire to bebetter prepared for future healthcare challenges,
enhance domestic biopharmaceutical research anddevelopment (R&D), and promote economic growth,
now is the time for Japan to take concrete steps toenhance its innovation ecosystem. This will help thegovernment achieve its important domestic goals,
including safeguarding patients’ early access to innovative medicines and treatments as well as ensuring that Japan remains a world leader in advancing
public health.
Regulatory and reimbursement policies thatincentivize innovation are needed to develop an

Biopharmaceutical Innovation Ecosystem

21

Unmet medical
needs

Appropriate reward
for medicines allows
reinvestment

Reinvestment

Health improvement andeconomic growth

Drug
Discovery
SystemDelivering
newmedicines

R&D

Regulatory
review andapproval

Industry–academia
collaboration in
Japan and othercountries

Simultaneous global
drug development underharmonized regulations

Source: PhRMA

GIVEN THE JAPANESE GOVERNMENT’S DESIRE TO BE BETTER PREPAREDFOR FUTURE HEALTHCARE CHALLENGES … NOW IS THE TIME FOR JAPANTO TAKE CONCRETE STEPS TO ENHANCE ITS INNOVATION ECOSYSTEM.
innovation ecosystem that expands R&D and drives
economic growth in Japan. However, in recent years,
the policy environment in Japan has become increasingly difficult for the biopharmaceutical industry.
Since 2015, more than 50 new drug pricing rules
have been introduced, and we are starting to see theresults of these policies that disincentivize investment
and undermine early access to innovative medicines.
For example:

growing recognition of the need for Japan to improve
its innovation ecosystem.
The government must ensure greater transparency in both its healthcare policy decision-making
and its application of new policies. More focused
bilateral engagement could help achieve progress inthese areas. A US–Japan healthcare dialogue undermechanisms such as the Competitiveness and Resilience Partnership or Economic Policy Consultative
Committee could help ensure that both countries Between 2015 and 2020, biopharmaceutical industry R&D investment grew 33 percent on average globally, while in Japan it declined 9 percent
 The number of medicines in clinical trials in Japan grew 8 percent annually between 2009 and2016. However, following the implementation ofharmful policy changes, growth in clinical trial
activity has fallen to 3 percent annually In 2016, 51 percent of global new medicines fromthe prior five years were available in Japan, but
by 2020 had declined to 43 percent

remain global leaders in driving innovation in the life
sciences and promoting global health security.
Having joined the Pharmaceutical Research andManufacturers of America in January as the new Japan
representative, I am honored to speak on behalf of thebiopharmaceutical industry at this critical time. I lookforward to working with the ACCJ and policymakers
in Japan and the United States to advance strong economic and health ties between our countries, and toensuring that Japanese patients continue to have early
access to lifesaving and life-enhancing medicines. n

Strengthen US–Japan Collaboration
It is clear that the Covid-19 pandemic has provokedsome important reflection in Japan on the policy
environment for innovative medicines, and there is

Having served for more than four decades in the US
Foreign Service, Ambassador Hans Klemm has extensive experience in the Asia–Pacific region and is a highly
respected diplomat with deep relationships in Japan.

Learn more
about PhRMA:
phrma.org
phrma-jp.org

Listen to this story
journal.accj.or.jp/podcast

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REFORM AND CHANGE

22

By Jesper Koll

Japan Surprises 2022
Five possible twists and turns in the Year of the Tiger

W

ith the Year of the Tiger well underway, here is
my annual list of Japan Surprises. These are notbaseline scenarios or probability-ranked results ofquantitative models but, rather, some of the things that keep me
up at night thanks to that nagging suspicion that some events
could change everything. And yes, there is plenty of room for
positive surprises from Japan in 2022. Enjoy, send me your comments, and I wish you a prosperous and happy Year of the Tiger.
1. Kishida’s Dream Comes True: Wages Rise 3 Percent
After decades of wage restraint and unions lobbying for longterm job stability, rather than short-term pay hikes, Japan’s job
market is now super tight. The war for talent is intensifying.
Prime Minister Fumio Kishida is opportunistic and right tofollow his predecessor’s top-down call for higher wages; andhis chances of success are higher than Abe’s ever were. Still, aggregate wage growth of more than 1.5–2 percent would be a big
surprise. An even bigger surprise would be if Japan’s wage andincome growth actually feeds higher consumption rather thanan even bigger pile of under-the-mattress savings.
Watch out for more companies following Hitachi’s leadthis year. Japan’s top conglomerate recently announced they’llswitch to hiring and promoting based on professional skills,
rather than generalist ability and seniority. A switch to performance-based compensation starting this year is now corporate
policy. If, as I suspect, Hitachi’s break with deeply entrenchedlabor compensation practices catches on and spreads to othercompanies, then we may see change. Japan’s average wage may
not move up as much as Kishida desires, but the variance insidecompanies and among industries is poised to rise significantly.
This, in my view, is the reason Japan’s consumer spending could surprise on the upside in the second half of 2022:
skills-based compensation equals higher job satisfaction, equals
greater confidence, equals higher spending. Kishida watchesout for the low end, while companies begin to incentivize human aspirations. And yes, this is exactly how Japan’s productivity boom will come about. If I’m right, prepare for positive
surprises not just this year, but throughout the 2020s.
2. From Tax Liability to Regional Investments:
Furusato Nozei 2.0
Japan runs one of the most innovative and successful redistribution policies in the world, its
hometown tax program, furusato nozei.

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Designed to revitalize rural communities, the scheme lets taxpayers nationwide buy goods and services offered by approved
vendors from small towns and villages, with your purchase offset
against next year’s tax bill. Of course, there are limits on how
much can be deducted, but there is no question that furusato
nozei works extremely well. Local producers are competing andbeefing up their marketing to attract more “free-money” customers they did not have before, while Japanese taxpayers enjoy selfdirecting their hard-earned money towards goods and services
they actually want, rather than just giving it up to the anonymous
government. Make no mistake, Japan’s furusato nozei has madepaying taxes fun and satisfying.
A positive surprise would be if Japanese leaders learn fromthis success and create furusato nozei 2.0. The current scheme
channels income tax liabilities into consumption. In other words,
it redirects the flow economy. A next generation version should
focus on channeling assets into investments by redirecting thestock economy.
How? Just as local private producers now compete fornational taxpayers’ yen, let local public leaders, activists, andpoliticians propose soft and hard infrastructure projects thatneed investment funds to get started. Again, national taxpayers
all over Japan would be invited to evaluate and select the projects
they want to support. When they make their investments, theamount would be credited against future fixed-asset or inheritance tax liabilities.
The economic impact is win–win. First, opening up prospects for investment money will energize local activists andleaders to get creative and propose concrete local soft and hard
infrastructure improvement projects.
Second, the scheme offers concrete incentives for Mr. and Mrs.
Watanabe to unfreeze someof their massive pile ofpersonal assets.

Anything that can be done to turn mattress money
into investments will be good for Japan.
Even better, if taxpayers can self-direct theirhard-earned assets to socially productive investment
projects of their choice, they will create a legacy forthemselves and a better future for Japan’s coming generations. Here is a project worthy of being called New
Capitalism, because the current system encourages
you to do nothing but wait until your assets disappear
into the black hole of inheritance tax payments.
3. Entitlement Reform: Asset-based Means Testing
Cutting public benefits and entitlements is unpopularin any country; but it is popular to tax the rich and redistribute wealth—particularly in Japan. As pressure
mounts to fix runaway deficits, creative and unorthodox policy proposals to do so by cutting entitlements
are being discussed.
Introducing financial means testing is one option.
This is where, for example, anyone with net financial
assets greater than, say, ¥10 million and no mortgage
debt is no longer eligible for the full public pension or
national healthcare. Here is an elegant policy solutionthat cuts entitlements and taxes the rich.

transformational opportunity. So, the 2022 surprisewill be Japanese CEOs stepping out of their comfort
zones and embarking on a full-blown, growththrough-acquisition strategy in general, and buying
startups in particular.
The numbers speak for themselves. As in the UnitedStates, there are plenty of innovative and potentiallytransformative startups in Japan. Unlike the UnitedStates, Japan has establishment players that don’t
buy outside innovation. Almost 90 percent of startup
exits in Japan are through initial public offerings.
Meanwhile, about 90 percent of US startup exits
are through acquisition. This difference in corporate
growth strategy and leadership culture goes a longway in explaining the reason Japan’s establishedcompanies are less dynamic and less globally competitive than their US establishment counterparts.
In my view, a lack of startup innovation power is
not Japan’s problem. The real issue is the almost utter unwillingness or inability of established players
to leverage outside creativity to realize synergetic,transformational growth strategies. In fact, any
analysis of the startup ecosystem in Japan quickly
reveals that established corporations appear to23

Jesper Koll
Global ambassador
Monex Group Inc.

JAPAN INC. GOING ON A STARTUP BUYING SPREE WOULD
BE A VERY POSITIVE SURPRISE FOR 2022.
Importantly, asset-based means testing would
redistribute wealth from the older generation (whichowns the vast majority of financial assets) to theyounger generation (which pays the vast majority oftaxes). Yes, it’s a radical rethinking of the intergenerational contract, but nobody should be surprised by
the creativity of Japan’s new generation of policymakers and politicians. Specifically, asset-based means
testing is a pragmatic redistribution policy that caneasily lend credibility and appeal to the design of
New Capitalism. It would be a positive surprise to see
concrete proposals along these lines in 2022, possibly
even before the July upper-house elections.
4. Corporate Japan Starts Buying Startups
With very few exceptions, Japan Inc. has never really grown through acquisitions. In-house researchand development and a proud our-team-first-andonly mentality have dominated, while mergers andacquisitions (M&As) have primarily produced turf
battles and legacy redundancies rather than positivesynergies. Case in point: two decades after Japan’sbank mergers, the three megabanks are still fighting
shadow wars to stubbornly defend the proud legacy
procedures and systems of the original partners.
For most Japan M&As, 1+1 barely adds up to 1.5.
However, there has recently been some positivechange, with younger chief executive officers—Recruit
Co. Ltd.’s Hisayuki Idekoba, Sompo Holdings Inc.’s
Kengo Sakurada, and Suntory Holdings Ltd.’s Takeshi
Niinami, for example—unafraid to turn the challenges of growing through acquisitions into a real

be more interested in stealing from, or killing off,creative challengers.
No doubt this happens in Silicon Valley, but there
is ample evidence that Japan’s establishment leadership culture is well behind in seeing startups and outside ventures as a pathway to new growth or a catalyst
for often long-overdue internal transformation. Japan
Inc. going on a startup buying spree would be a very
positive surprise for 2022.
5. United We Stand: Global Covid Policy Commission
The pandemic has been with us for more than two
years, yet it feels very much as though we’re nowhereclose to agreeing on the optimal public policy response.
Rebuilding public trust in both science and policymaking is poised to be one of the biggest post-Covid challenges. Surely, we should be able to do better thanthe every-strongman-for-himself response we havegotten almost everywhere. A huge positive surprise in
2022 would be the setting up of an independent global
Covid policy commission, mandated to analyze—
without fear or favor—all the policy measures taken
around the world, including hard lockdowns, soft
lockdowns, border closures, and quarantine regimes.
The goal would be to acknowledge common groundfor what has and has not worked.
In my view, the sooner global leaders pull together
and demonstrate that they actually want to learn fromthe various responses to the pandemic, the better the
chances that mankind in general, and public life inparticular, will emerge stronger and more resilientfrom the calamity. n

DIGITAL+
What elsemight change?
Visit the Digital
Journal website
for five additionalchanges that could
make 2022 a special
year for business.

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THE ACCJ JOURNAL • VOL. 59 • NO. 1 • SPRING 2022

HR

24

By Julian Ryall

STEPPING
UP FORCHANGE
COMPANIES MOVE QUICKLY AS TALENTEXPECTATIONS EVOLVE

The global employment landscape has shifted dramatically during the past two years, with thecoronavirus pandemic encouraging employers to be more flexible than ever in their arrangementswith staff. Working from home, for example—virtually unthinkable for many companies not long ago—
has quickly become perfectly acceptable and, often, expected.
Employees, for the large part, have seized upon these opportunities to improve their work–life balance,
escape the drudgery of the commute, and spend more time with their families. And now that the genie
is out of the bottle, it will be very difficult for many people to return to previously accepted ways ofworking—at least on an all-day-every-day basis.

THE ACCJ JOURNAL • VOL. 59 • NO. 1 • SPRING 2022

Change Not Optional
While Japan has, in the past, been criticized for failingto keep up with changes in the job market, there areplenty of organizations here that have embraced
different approaches to work. Human resources (HR)companies say they must if they want to continue toattract the best and brightest talent, with a dire shortage of candidates in many sectors giving skilled workers the luxury of choosing where they might go next.
Well before the pandemic, Japan already had
been experiencing a worsening labor shortage,
pointed out Bryce Conlan, president of Nagoya-based
H&R Consultants K.K., which specializes in foreign
staffing solutions. This shortage could be seen ina broad range of placements, from convenience
store jobs to blue-collar positions to highly skilled
artificial intelligence or information technology (IT)experts. The situation had been compounded bysalaries significantly lower than those in the UnitedStates and even elsewhere in Asia.
“Another serious issue was the lack of innovationand flexibility in HR policies,” said Conlan. “Or, rather,a lack of willingness to change old habits and cultures,
where long hours were the norm and the evaluation
system was built around time spent rather thanresults achieved. The need to be seen to be working,rather than the need to achieve results.”

Nancy Ngou, an associate partner with EY
Strategy and Consulting Co., Ltd., shared that the
pandemic has hastened changes that already had
been taking place at some companies. These include: Changes to develop and retain younger employees who prioritize flexibility
 Removal of barriers to women’s advancement in
the workplace Evolving workplace cultures to embrace change(e.g., inclusion, digitalization, global mindset)
And while some previously had been hesitant totake advantage of those changes, such as flexibility—
managers because they didn’t believe it was feasible andemployees out of fear such changes would negatively
impact their careers—these perceptions began to erode
when people were forced to work remotely, she said.
“Businesses are stepping up implementationof their globalization and digitalization strategies,
and employees’ expectations of their work havechanged,” she explained. “Employees have had time
to reflect on their personal priorities and reevaluate
expectations. They feel more emboldened to leave
what they viewed as simply a job they did, for a more
purposeful career or a job they want to do. Employees—and not just the younger generation or working

THERE HAS BEEN MORE CHANGE IN THE WAY
COMPANIES OPERATE AND PEOPLE WORK OVER
THE PAST 24 MONTHS THAN OVER THE PAST 10 YEARSHERE IN JAPAN.
Accelerated Adaptation
There were signs of change before the pandemic.
More companies had been introducing cultural andlanguage training, and there was a new willingness
to hire talent from abroad. But things have changed
rapidly since the first cases of Covid-19 were reported
in Japan in early 2020.
“One positive thing that has come out of thepandemic for Japan is an acceptance of the conceptof remote work or working from home,” Conlan told
The ACCJ Journal. “There has been more change inthe way companies operate and people work overthe past 24 months than over the past 10 years herein Japan. So many processes and old ways have beentransformed, with things such as digital signatures
now being more commonly accepted—reducing theneed for faxes—and a greater reliance on email anddocument-sharing tools.
“This has allowed a totally new way of working
and, I believe, has brought a huge increase in efficiency,” he said. “We have one client who has well over 60
IT engineers working from India, purely because they
have not been able to get visas to enter Japan to comeand work. They are now working full time remotelyfrom India, something that would have been unheardof five years ago.”

25

Bryce Conlan
President
H&R Consultants K.K.

Nancy Ngou
Associate Partner
EY Strategy &Consulting Co., Ltd.
Co-chair
ACCJ Human Resource
Management Committee

parents—are seeking sustained flexibility, purpose,and balance.
“Both the business and employee factors areforcing an acceleration of many changes HR leaderssought before, but with the added focus on employee
retention and recruiting,” she added.

Embrace Empowerment
The pandemic has, nevertheless, compounded what
was already a candidate-short market, according
to Charles Breen, associate director of recruitmentcompany SThree K.K., which specializes in science,technology, engineering, and mathematics—or
STEM—fields.
“Employees have always wanted interesting
and challenging work with growth opportunities,
but that’s something I see people focusing on more
nowadays,” he explained. “With innovation happening
faster across all forms of technology—whether thatis engineering, IT, or biotechnology—leaders in theirfield want to work on cutting-edge projects.
“Work–life balance has shifted in definition
for progressive companies, including my own,” headded. “With employees having more autonomy
when it comes to scheduling their work, they canbetter engage more fully in all aspects of their lives.

Charles Breen
Associate director
SThree K.K.

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Companies that embrace this empowerment will
attract the top talent in their field.”
Pay is as important as before and has not lostits relevance in the hiring process, Breen said. “Butfor the best employees, the company’s offering mustgo much further than just money. Top talent looks
at potential growth, for the individual as well as thecompany, and whether their own values are alignedwith those of that employer.”Once in a company, every employee has a “different set of needs and values,” Breen added, noting thatit us up to the employer to support those goals. But,he cautions, gimmicks such as beanbags and freefood in the office are not very high on a potential new
hire’s list of priorities.

Hire and Retain
Sean Lindley, business operations manager for Titan
Consulting K.K., said the job market globally has
become even tighter, as many of the best workers intheir fields are already employed, are happy in theirpositions, and are not looking for a new job. The
challenge for managers, therefore, is making surethat the person remains with the company.
“It is very clear from our experience that any
company in Japan, when presented with a strong
candidate, really should grab him or her, because
the shortage of talent is so acute that any hesitation

dependents, and identical opportunities for staff,
regardless of race, religion, cultural background, or
sexual orientation.
Titan Consulting recently launched a new service—its Spotlight Package—designed specifically tomeet the growing demand for more women in senior
management positions. New legislation in the UnitedStates mandates that 30 percent of a board be madeup of women. Companies that have let diversity slide
are now desperately seeking capable candidates,
Plessier noted.
“The Japanese government did set a target of 30
percent of managers being female by 2020, but even
now it is only 8 percent,” she explained. “That is disappointing, but we do see a changing mindset and expect
demand for high-quality female candidates to rise.”
H&R Consultants’ Conlan agrees that a company’s
requirements can often align very closely with thoseof potential candidates, and this must be emphasized
to attract the best talent.
“Companies want innovation and efficiency,” hesaid. “To compete in the global market, not just insales but in the ability to attract and secure the righttalent, companies are realizing that they need tochange. This means that what they expect from theiremployees is changing.
“Companies are also looking for diversity in theirstaff: different cultures, education, and languages

27

Sophia Plessier
Businessdevelopment manager
Tian Consulting K.K.

Sean LindleyBusiness
operations manager
Titan Consulting K.K.

FOR THE BEST EMPLOYEES, THE COMPANY’S
OFFERING MUST GO MUCH FURTHER THAN JUSTMONEY. TOP TALENT LOOKS AT POTENTIAL GROWTH.
means that person will be gone,” he shared. “An
employer needs to be agile and recognize the best
people. That is where a trusted human resources
partner is critical.”Once aboard, an employee who feels valued, who
knows that the company is growing and moving in
the right direction, and who has “regular, meaningful conversations” with managers “about where hisor her career is going,” is less likely to be looking to
move, he added.
“The little things about a company’s culture andvalues make a big difference,” Lindley remarked.
“People leave for reasons that we call the two Cs:
compensation and culture. Compensation is easy
to deal with, but it’s very important that a company
work hard to ensure a good workplace culture.”

Driving D&I
There is also an increasing emphasis on diversity
and inclusion (D&I) in hiring, said Sophia Plessier,business development manager for the company. In
focus are concerns such as ensuring gender equality
in the workplace, paternity leave, time off for people
caring for elderly relatives, support for families orbring a much wider variety of innovation, ideas, andthinking.” But, he added, they will also need experts
in this area to manage a new, diverse workforce.
“And employees—especially the younger generation and those with an international mindset or
foreign language ability, with experience studying
or working abroad—have seen how other cultures
work,” he added. “They have seen the opportunities
and the diversity that exists.”

No Going Back
Asked what employees expect of their company
today, Conlan counted off their priorities. As well as
work–life balance and development opportunities,
they do not want to see a rollback of the workplace
flexibility that has been a byproduct of the pandemic.
They also want their employer to commit to a strong
environmental, social, and governance presence, andthey want talent mobility as well as flexibility, andevidence of innovation.
With all those promises in place, he said, why
would a valued and valuable member of staff look foropportunities elsewhere? n

THE ACCJ JOURNAL • VOL. 59 • NO. 1 • SPRING 2022

WORKPLACE28

By John AmariLIFE
BEYOND
COVID-19

PROFESSIONALS, GRADUATES, AND NEW HIRES SHARE
HOW WORKPLACE EXPECTATIONS HAVE CHANGED

Since the first case of Covid-19 was confirmed in Japan in January 2020, the world as
we know it has changed in many ways—not least of which has been a transformation
in how we study, work, and socialize.
In light of this, The ACCJ Journal spoke to professionals in business and education,
as well as soon-to-be-graduates, to learn about the challenges they’ve faced—and thesolutions they’ve implemented—in a period defined by the pandemic.
They said work and study will not return to pre-pandemic methods, and agreed that
employees and students in the so-called new normal era have different expectations
than before about the future of work and education.

THE ACCJ JOURNAL • VOL. 59 • NO. 1 • SPRING 2022

Flexibility Is Expected
For universities, the pandemic has led to changes in
how they deliver courses and engage with students.
Matthew Wilson, dean of Temple University,
Japan Campus, said that before the pandemic “remote
work was not an option,” because all instruction was
carried out in person. That has changed. Nationwide,social distancing rules encourage online instruction.
In some cases, at Temple, teaching has been conducted from offices repurposed for remote lecturing, withsome students—especially those overseas—being
restricted to remote participation.
How has the university implemented the newrules? They began by identifying which departments
could work remotely and which were better suited to
on-campus work.
They settled on a hybrid strategic plan according to which some staff and faculty work from homewhile others remain on campus, depending on theneeds of particular departments. Students have been
studying exclusively from home, while others havebeen in the classroom.
Remote study, Wilson added, has been particularly challenging for the 1,400 students on thecampus, all of whom suddenly were faced—for the
first time—with having to learn online.
Looking back, he acknowledges that things will
not completely return to pre-Covid-19 ways. “We realized how, in this environment, stability is key, andflexibility has almost become an expectation.”

Learning (COIL), a cross-border learning initiative
involving institutions, faculty, and students.
“I don’t know how, but in the end, it all worked
out,” Zurcher said. “We did a mid-semester survey ofthe students and, to my great surprise, the ratings ofthe classes and their interactions with the professors
had jumped 15 points.”
While students, naturally, would have preferred inperson classes on campus, by some measures, student
engagement with instructors had increased, he added,
as had their level of satisfaction with remote learning.

29

Serving the Underserved
Zurcher’s experience is largely shared by Tom Mason,
executive director of the United States–Japan Bridging Foundation (USJBF), a non-profit that provides
sponsorship to underrepresented students so thatthey can study in Japan for a semester or a year.
Due to pandemic-related international travel
restrictions, the USJBF exchange program was put
on hold for about two years. But, rather than end it,
the organization began online training programs,
and these became a hit with students.
“We ran a webinar series called ‘How to findJapan-related careers.’ The purpose of that was toconnect students to people who not only have foundjobs in Japan, but also Japan-related jobs in the
United States,” Mason explained.
Between 200 and 300 undergraduates participatedin each seminar, suggesting that interest in Japan had

Matthew Wilson
Dean
Temple University,
Japan Campus

Stephen Zurcher
Dean of Asian Studies
Kansai Gaidai University
Chair
ACCJ Tourism and
Hospitalty Committee

WE REALIZED HOW, IN THIS ENVIRONMENT,STABILITY IS KEY, AND FLEXIBILITY HAS ALMOSTBECOME AN EXPECTATION.
Foreign Engagement
Like Wilson, Stephen Zurcher, dean of the Asianstudies program at Kansai Gaidai University, faced
severe challenges when Covid-19 hit. In his case, thatmeant facilitating hundreds of study-abroad students
at the university on semester- or year-long programs.
Following a schedule common at institutions
outside Japan, Kansai Gaidai University had started
its winter semester when nationwide calls for remote work and teaching began in early 2020.
At that time, the university had only a handful ofdays to transition to online—and mostly remote—instruction, Zurcher recalled. By the next semester,when their foreign students had left Japan, instruction became fully remote.
One challenge was how to instruct students who
were living across different time zones. To this end,
some courses were delivered in real time while others
were pre-recorded and made available on demand.
In hindsight, Kansai Gaidai University was aheadof the online learning curve: before the pandemic,
they had incorporated remote instruction and study
in collaboration with partner universities under aprogram called Collaborative Online International

not waned, despite the pandemic and restrictions on
international travel.
However, Mason admits that most participants
would have preferred in-person events. And industry
experts acknowledge that, although remote learning—including interactive webinars and COIL—has
expanded, it can neither fully replicate nor totallyreplace in-person cultural exchange.
“A lot of language learning is done by observing
how people speak in real life,” he said. “And thenthere are the accidental interactions, which don’t
really occur online.”
As the pandemic abates and international travel
restrictions are set to be relaxed, the USJBF haslaunched online recruitment initiatives for its next
batch of candidates.
“In the past, what we did was send them thefinances and send them abroad. But now, we areable to run pre-departure orientations, as well as
networking and mentorship opportunities, online.
“And, when they are in Japan, we can deliver
supplemental infrastructure programs in person.
Our students are based across Japan, from Hokkaido
to Okinawa, so they’ll have networking programs in

Tom Mason
Executive director
United States–Japan
Bridging Foundation

Toshimasa Hatori
Student
Temple University,
Japan Campus

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THE ACCJ JOURNAL • VOL. 59 • NO. 1 • SPRING 2022

major cities—and we’re able to build that out because of remote
working technologies.”

30

University Challenge
For students, the Covid-19 pandemic upended studying in ways
previously unimagined. That was the case for Toshimasa Hatori,
a fourth-year international business student and former student
government vice-president at Temple University, Japan Campus.
Luckily for Hatori, he entered the university in fall 2019, justbefore the pandemic spread to Japan, and thus was able to enjoy
some on-campus life, if only briefly.
Were there challenges when remote learning began? There
were many. One was adjusting to online classes.
“Another was test-taking: the professors were concerned
about plagiarism, which is a valid concern,” he explained.
And students were not really able to enjoy life on the university’s new campus, which had opened in August 2019, or use its
facilities. “I was playing basketball, and I was the captain, but wecouldn’t use our brand-new gym.”
Hatori recalled being a freshman. “Social gatherings wereconstrained; I couldn’t go to regular restaurants, nor could I
hang out with my friends at a house party. We couldn’t even go
to a supermarket at the outset of the pandemic.”
Without the opportunity to socialize in person, students
chose, instead, to maintain friendships online via video platforms such as Zoom and the messaging app LINE.
However, this way of socializing has come at a cost. Jun Ikeda(not his real name), a fourth-year student based in Tokyo, said:“All conversations are now online, making it difficult to feel theother person’s emotions. This is especially true for people you
meet for the first time.”

New Generation at Work
The so-called new normal has altered Hatori and Ikeda’s expectations of the workplace. When they start their jobs later thisyear, both expect hybrid options to be the norm, a change fromtheir pre-pandemic expectations.

“Many friends of mine want a hybrid work experience,”
Ikeda shared.
Despite the disruption that many students have faced during
this period, some have found a silver lining in the Covid-19 cloud.
Miku Hashimoto (not her real name), a fourth-year student,
told The ACCJ Journal: “I stayed in my hometown for a year withmy family, thanks to the pandemic, and found that I like living in
the country, where I can enjoy my hobbies and be close to family.”Mark Davidson, director of government and external affairs
at Amway Japan G.K., is sympathetic to the experience of students
such as Hatori, Ikeda, and Hashimoto. Davidson’s own daughter
had to navigate her university career during the pandemic.
“I have a daughter who is a university student. She did aninternship in New York last summer, and it wound up being—
except for two days—all online. That was not the best experience for her.”
A co-chair of the American Chamber of Commerce in Japan(ACCJ) Education Committee, Davidson believes that first-timehires will be challenged in new ways in a post-pandemic world.
To succeed, they’ll need a diverse set of skills.
“More than ever, students will need a broad-based liberalarts background,” he predicted. “While they’ll need technicalskills, more than anything else, they’ll need resilience and ananalytical mindset to figure out problems—especially in thisremote environment—that they may not have seen before.”

Young Professionals
But it’s not only students who have been challenged during the
pandemic. Young professionals, too, have faced difficulties.
John W. Carlson III, for instance, transitioned to a new roleat Novartis Japan in the summer of 2021, when the pandemic
was raging. Carlson is co-chair of the ACCJ’s Young Professionals
Forum (YPF) and the Healthcare Committee.
He is the new commercial partnerships lead and a senior
strategic assistant at healthcare company Novartis Japan, wheremost of his work has been remote.

Although virtual events have broadened access, there is also a desire to return to in-person events such as this 2019 YPF Mastermind session.

THE ACCJ JOURNAL • VOL. 59 • NO. 1 • SPRING 2022

For new transplants like him, the early days in acompany can be the most challenging. “Orientationis actually the hardest part, because you have to getpeople engaged with the company,” he explained.
“And the big challenge is not working withina department, but working collaboratively withcolleagues—whom you would have met if you were
working in the office—in other departments.”
Due to the pandemic, Novartis Japan began aredesign of the office, complete with remote-work
technology which facilitates hybrid workstyles, according to Carlson.
“Essentially, employees get to choose whichworkstyle or format they wish to use.”
While the final redesign is yet to be seen, theexpectation is that employees will split their work
between office and remote locations.
“The office has become a place for collaboration,
which requires more in-person work, while individual tasks, such as writing and analysis, lend themselves very well to remote work,” Carlson added.

In-Person, Remote, Hybrid
Despite the advent of new workstyles, challenges remain for young professionals. As many of them do not

networking games where committee members meetchamber leaders.
But with the pandemic potentially waning, there
has been a growing clamor for in-person events—or,at least, multichannel, hybrid ones—Kimuro added.

31

The New Normal
For companies, the pandemic caused major changes
to internal and external processes. At Amway Japan,
for example, all recruitment shifted to online-only
processes from around March 2020, explained Hiroyo
Aihara, the company’s human resources director.
“Everything changed: candidate meetings, job
interviews, actual onboarding, orientation meetings
with division heads, even how we present our company to candidates. All went online,” Aihara said.
The transition to digital-only was not easy for staff
and new hires. In-person onboarding, for instance, became a singular affair conducted during a one-off visit
to the office to receive key items, such as a work computer. And even then, the visit was socially distanced.

Mark Davidson
Director of government
and external affairs
Amway Japan G.K.
Co-chair
ACCJ Education
Committee

What’s more, there was a sharp learning curve tobe navigated by staff, especially mid-career professionals experiencing remote work for the first time,
Aihara admitted.

THE OFFICE HAS BECOME A PLACE FOR COLLABORATION,
WHICH REQUIRES MORE IN - PERSON WORK, WHILE INDIVIDUALTASKS, SUCH AS WRITING AND ANALYSIS, LEND THEMSELVESVERY WELL TO REMOTE WORK.
have a developed social network, feelings of isolation
are common, as was the case with the students above.
“Mid-career professionals tend to have a house,children, family, and are more engaged with thebusiness community, whereas young professionals
are cut off from their university and have a relatively
narrow network,” Carlson explained.
As a result, some young professionals in the YPF
have had their health—in particular their mental
health—adversely affected. It is a goal of the YPF

Which is not to say that remote work has beena cakewalk for recruits; it has not. That’s because
many of Amway Japan’s new hires are returnee
Japanese, or Korean and Chinese graduates settlingin Japan from overseas.
For them, remote work was a double blow. “Theyusually live alone and need to find an apartment inJapan,” she explained. “But then, once they wereready for work, we had to tell them, ‘Please workfrom home.’”to mitigate such isolation via in-person or hybrid
networking events.
That said, Carlson recognizes that some young
professionals have thrived under the prevailing online
networking events held by the YPF.
Co-chair Anna Kimuro agrees.
Speaking personally, Kimuro, who is a client leader
at IBM Japan, noted that remote work has allowed
more young professionals than before to join online
YPF events. One reason for the increase is that being
remote negates the need to commute to a physicalvenue, leading to more time—and more opportunity—
to participate remotely.
In a recent online event, members discussed
how to expand their network informally within the
ACCJ. One suggestion was to hold speed dating-styleThat said, the transition to remote work was madeeasier because, even before the pandemic began, thecompany already had in place flexible workstyles,
including some remote work.
“We were already allowing some employees towork two days per week from home, and we had initiatives such as dress-your-own-way,” Aihara added.
Her colleague, Davidson, who is also chair of the
ACCJ’s Government Relations Committee, agrees.
In the future, he said, companies will have to ensurethat remote work feels personalized.
A version of the proverbial water cooler—theglue that holds companies and society together—will
be required to garner comradeship among colleagues
and students, whether that’s in person, online, or via
hybrid solutions, Davidson concluded. n

John W. Carlson III
Sr. strategic assistantNovartis
Co-chair
ACCJ Healthcare
Committee and Young
Professionals Forum

Anna Kimuro
Client leader
IBM Japan
Co-chair
ACCJ Young
Professionals Forum

Hiroyo Aihara
Human resources
director
Amway Japan G.K.

THE ACCJ JOURNAL • VOL. 59 • NO. 1 • SPRING 2022

MANAGEMENT

32

By C Bryan Jones

MOTIVATE
REMOTELY

TIPS FOR KEEPING YOUR TEAM ENGAGED IN A WORLD
WHERE HYBRID WORKSTYLES ARE THE NORM

When the pandemic began, a sudden shift to remote work brought challenges tocompanies accustomed to having everyone in the office. Many leaders had to learn on
the go how to hold their teams together and keep them engaged and productive.
Two years later, things are running more smoothly for most. But what at first seemed
a temporary solution to a temporary problem has become an expected norm. Remote
work is here to stay.
So, how do you keep people motivated in a world where some portion of your teamwill always be outside the office? The ACCJ Journal talked to three experts in training
and team-building to learn which techniques are working for them and how we canall make remote and hybrid work models effective for the long term.

THE ACCJ JOURNAL • VOL. 59 • NO. 1 • SPRING 2022

Overcoming Isolation“We are social animals, and the group—particularly
in Japan—is a very important aspect of work life,” said
Dr. Greg Story, president of Dale Carnegie Training
Japan and a certified Dale Carnegie master trainer.
“How to maintain that group identity and keep goodlevels of teamwork will remain a difficulty during
remote work. The office provides an avenue for socializing which remote work tends to take away. This canlead to people feeling isolated and lonely.”
During the start of the pandemic, he noted, all of
this was new. There was the idea that this, too, would
pass. “But now it is becoming more mainstream, andthis is the new calibration. Not everyone is going tothrive in this remote environment.”
Michael Glazer, senior consultant at Tokyobased People Focus Consulting, offered several
recommendations for avoiding a feeling of isolation.
“Start or continue regular one-to-one meetings,”
he said. “Most managers have felt some difficultyleading remotely, because they can’t physically see
what’s going on. Some hesitate to get directly involved,
because they don’t want to be misperceived as micromanaging. Others hesitate to give more autonomy,
because they don’t want to be misperceived as not
caring if their approach is too hands-off.”
Holding weekly one-to-one meetings is nothing
new, he admits, but this can go a long way toward
improving communication, as well as increasing
engagement and motivation. Usually 20–30 minutes
is enough time for these meetings.

Japan Sales Development Committee, recommends
virtual co-working.
“You can ask one to four people to join a virtual
call with you for a fixed length of time in which you
spend the first few minutes sharing what you plan
to work on during that time,” she explained. “Then,
you can go off video, on mute, and work knowing that
there are other people there holding you accountable.”She uses the technique herself. “It’s incredibly
effective in helping you get work started that you
might have been procrastinating on. Plus, you cantell people at home that you’re in a meeting, and thathelps you avoid getting distracted.”

Building Team Spirit
Gronauer’s virtual co-working technique is one
approach that can help build and maintain cohesive
teams when members are scattered and working
from their homes. It recreates, to some extent, anoffice environment in which the presence of others
helps you stay on track.
Another key element of the workplace that was
disrupted by the pandemic and has undergone significant change is the morning meeting. Story believes thismust be maintained even in virtual settings, and there
must be some ground rules for how it is conducted.
“The morning meeting is held in person in manyorganizations, and it is a good practice to recreate
this as much as possible online,” he said. “Cameras
must be turned on so that we can all see each other.
Going through the why of what we are doing is a good

33

Greg Story
President
Dale Carnegie
Training Japan

Katheryn Gronauer
Founder
Thrive Tokyo
Vice-chair
ACCJ Sales Development
Committee

WE REALIZED HOW, IN THIS ENVIRONMENT,STABILITY IS KEY, AND FLEXIBILITY HAS ALMOSTBECOME AN EXPECTATION.
“If managers aren’t talking, connecting, andgetting information and feedback regularly, how are
they ever going to lead and manage effectively?”
Story pointed out that remote work requires a lot
more communication than when everyone is in theoffice. “We have trouble getting hold of people, andkeeping people up-to-date with what is happening
becomes more difficult,” he explained. “We need toovercommunicate, in fact. More sharing of information becomes crucial, be that through voice or text.”
Glazer also suggests making work more visible tomanagers and other stakeholders.
“Doing this makes it easier for others to support, recognize, and possibly redirect your effort,”
he explained. “It can also spark collaboration andinnovation. This can be done through group chat orother collaboration tools. I’ve also seen some people
schedule their individual work in Outlook to keep
their team members in the loop of what they’reworking on.”Katheryn Gronauer, founder of cross-culturaltraining and coaching company Thrive Tokyo andvice-chair of the American Chamber of Commerce indaily connector to our joint purpose. Sharing information with each other is also a good practice, as it makes
for a stronger team spirit when we know what everyone is doing, even if we don’t meet so often in person.”
Meetings such as this are only check-in points
for the group, however, and managers need to ensurethat communication continues throughout the day
and week to strengthen the foundation of the team.
It is also important to show your remote employeesthat you care about their well-being, ideas, opinions,and goals. How can you best do that when you have
limited in-person interaction with them?
Gronauer believes that it is important for organizations to have a top-down approach to initiating
conversations about well-being. “I have worked with
employees who have shared that they hesitate toraise work–life balance challenges to their managers,
either due to hierarchy or not knowing a new manager’s style due to remote work,” she said. “Scheduling quick catch-ups to talk not just about work but
about work–life balance is helpful.”
Another recommendation she offered is engaging an external coach.

Michael Glazer
Senior consultant
People Focus Consulting

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THE ACCJ JOURNAL • VOL. 59 • NO. 1 • SPRING 2022

There are people living with illness,
people fighting pain.
And then there are people
who walk beside them, offering care.
Each with their own anxieties and worries,
they’ re feeling their way through the dark.
At AbbVie, we aspire to lighta beacon of hope in these lives.
Our diverse team has always been,
and continues to beunited in creating new medicinesand healthcare approaches
through world-class science,
working to seek new solutions for patients.
And looking ahead,to make the tomorrow we hope for even brighter,
AbbVie will work hand in hand with people
who share our aspirations.
Doing our part to serveand support our communities
and protect the environment,
making a lasting impact
that's felt within healthcare and beyond.
So that everyone in society
can live true to themselveswith a smile on their face.

Raising a smile
for tomorrow,
together.
AbbVie GK
3-1-21 Shibaura, Minato-ku
Tokyo 108-0023, Japan
https://www.abbvie.co.jp/

35

THERE’S A BROAD SPECTRUM OF ACTIONS WE CAN TAKE, FROM
MAKING SMALL ADJUSTMENTS TO HOW WE INTERACT WITH OURTEAM MEMBERS TO INTEGRATING THE PRINCIPLES OF WELL - BEING
INTO CORPORATE CULTURE AND SYSTEMS.
“As a coach, I feel that employees value being able to talkto a third party about work goals, personal life goals, and how
to better manage themselves,” Gronauer explained. “It helps employees with their self-management without taking time awayfrom a manager’s day.”Show You Care
Expanding on well-being, Glazer said that “there’s a broad spectrum of actions we can take, from making small adjustments
to how we interact with our team members to integrating theprinciples of well-being into corporate culture and systems.”
He offered three practical actions: Pay careful attention to language and behavior
 Express interest and concern directly Match the support you offer to what’s needed“We might notice when a colleague, who has a reputation
for managing time well, starts showing up to meetings a few
minutes late, or starts asking for work deadline extensions. This
could be a sign of stress or an early-warning sign of burnout,”
he said. “Other subtle signs include a shift in mood or outlook,increased irritability, forgetfulness, or even just not using their
webcam as often as usual.”

Glazer noted that research from Google’s Project Oxygen a
few years ago found that “showing concern for success and wellbeing” is one of 10 behaviors that make managers great at Google.
“Just as we would do in person, use empathy and active listening
skills to share changes you have observed,” he suggested. “If you
have a concern that someone is struggling with an assignment, isstressed out, or is starting to withdraw, check it out.”
And matching support to what’s needed can make a big difference in keeping a team member on board. “While offering heartfelt encouragement to take time off might seem like the supportivething to do, researchers have found that people who are grapplingwith difficult feelings really need compassion and acceptancemost,” Glazer explained. “Similarly, when the issue someone iswrestling with is a practical problem they’ve never solved, theunderlying need is for tools, advice, direction, and assistance.”

Equipped for Success
By following the advice shared by Gronauer, Glazer, and Story,
and exploring other ways of bridging the gap between the office
and remote locations, leaders may find that the outcome ofchange forced by the pandemic is greater productivity and success for the company, as well as satisfaction with work and life
for employee. While the shift we have been going through has
been difficult, it represents digitalization in action and may well
be one of the most positive legacies of Covid-19. n

THE ACCJ JOURNAL • VOL. 59 • NO. 1 • SPRING 2022

TALENT

By Malcolm Foster

36

THE GREATRESIGNATION
COULD THE CHANGE COVID-19 SPARKED IN
THE UNITED STATES OCCUR IN JAPAN?

The pandemic has brought tumultuous change to the workplace worldwide, and in
the United States millions of employees have decided to quit or change jobs in what
has been dubbed The Great Resignation. Could we see a similar upheaval in Japan?
In several ways, we already are—although the changes may not be as dramatic orvisible, for social, financial, and cultural reasons. Japanese workers aren’t quitting
and changing their jobs en masse, but we are seeing more willingness to jump
ship—particularly among the younger generation—as well as shifting priorities
and expectations about one’s job, career, and employer that will probably transform
Japan’s labor market, recruiters and experts have told The ACCJ Journal.

THE ACCJ JOURNAL • VOL. 59 • NO. 1 • SPRING 2022

The Great Reflection
Suddenly finding themselves working from home,with extra time on their hands, many workers have
had the mental space to think about their careers
and broader purpose in life—something they often
had been too busy to do previously. Some realized
they weren’t satisfied with their jobs and work–lifebalance, and they began to explore new paths, suchas volunteering, picking up side gigs, or changing
jobs entirely. That’s a big step in Japan.
“Everybody is reassessing their values,” said
Jeremy Sampson, managing director at recruiting
company Robert Walters Japan K.K., which connects
English-speaking candidates with foreign-affiliatedor Japanese companies. “They’re reassessing theirlives, their careers, and really wondering if they’re
happy with what they’re doing.”“It’s like stepping off the treadmill,” offered Simon
Jelfs, managing director at FocusCore Group KK,
which specializes in bilingual recruitment for US andEuropean companies. “People have had a chance tostep back, think, and reassess.”
Covid-19 has changed people’s priorities in evaluating a job. In a survey conducted by Robert Walters
earlier this year, candidates said their top value wasdoing challenging and interesting work, followed byinspiring colleagues, corporate culture, and flexible
working. Job security and excellent compensation

recognizing merit as a key hiring factor, there’s also notmuch professional incentive for mid-career employees
to change jobs. In the United States and Europe, many
who switch jobs can obtain higher salaries or promotions, but that’s usually not the case in Japan, according
to Akie Nakamura, chief researcher at Rengo-RIALS.
Some even see their salaries drop.
Surveys by the Recruit Works Institute show
that, compared with workers in the United States,
China, France, and Denmark, those in Japan express
greater overall dissatisfaction with their jobs. But thelack of mobility discourages many from doing anything about it. “Changing jobs requires a lot of courage in Japan,” she remarked. “Sometimes it’s likened
to jumping off Kiyomizu Temple’s high platform.”
The number of workers who change jobs has
been rising in recent years, but fell over the past
two years. During the pandemic, the figure fell to
2.9 million in 2021 from 3.5 million in 2019, government data shows. Still, those saying they would liketo change jobs has continued to rise steadily, having
reached 8.9 million in 2021, according to the government’s labor data, with those aged between 25 and 34
accounting for the biggest group, at 2.3 million. Anda survey by Robert Walters of 800 employees acrossvarious industries registered with the recruitershows that 60 percent of respondents were looking
to change jobs over the next 12 months.

37

Jeremy Sampson
Managing director
Robert Walters
Japan K.K.

Simon Jelfs
Managing director
FocusCore Group Japan

JAPAN IS LESS FLEXIBLE IN TERMS OF YOURTRAJECTORY; YOU DON’T HAVE A LOT OF OPTIONSTO MAKE MISTAKES AND THEN PICK IT UP AND FIX IT.
were ranked sixth and seventh—well below where
they had been in previous surveys.
“We’re seeing people wanting to change jobs forreasons around looking for something more fulfilling,” Sampson said. “Or because they realize life isshort, and that they want to be doing something thatmakes them happy.”

Generation Gap

Jumping off Kiyomizu

there, they will look elsewhere.
Many in the younger generation have seen theoften-grueling jobs their fathers (in most cases) held
and aren’t necessarily enthused by the idea of devoting their entire career to a company, Professor O’Day
said. They are thinking more in terms of how thecompany can benefit their career objectives, not theother way around, he and other experts agreed.
Some companies are shifting from the traditionalorganizational model, in which workers function as
members contributing to the company’s overarching
mission, to a self-directed model that give employees
more freedom to pursue their ideas and offers choices
within the company, experts explained.
Over the past few years, we’ve been seeing sometwenty-somethings at big brand-name companies

But changing jobs is hard in Japan. If you have special
skills, such as English ability, as is the case with jobseekers being placed through FocusCore and Robert
Walters, there is strong demand. But for most Japanese, switching jobs can be very risky—particularly
for those in their forties, fifties, or sixties who havestable jobs and good salaries at major companies, andfamilies who depend on them.
“Japan is less flexible in terms of your trajectory;
you don’t have a lot of options to make mistakes andthen pick it up and fix it,” explained Robin O’Day, a professor of anthropology at the University of North Georgia
who has studied Japan’s youth culture. “If it doesn’t
work out, it’s on you because you took a gamble.” In abusiness culture that values loyalty and is only gradually

Changing jobs is less risky—and a bit more common—among Japanese in their twenties and thirties. For these people, there is less to lose potentiallyin terms of salary, and more options from which tochoose. Companies are also more likely to hire them.
And increasingly, if young people are unhappy with
their jobs or feel they don’t have much of a future

Robin O’Day
Professor of anthropology
University ofNorth Georgia

Akie Nakamura
Chief researcher
Rengo-RIALS

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THE ACCJ JOURNAL • VOL. 59 • NO. 1 • SPRING 2022

switch jobs, which was virtually unheard of before, Nakamura
noted. The top two reasons are:38

 Fear that they won’t be able to do interesting work if theyremain where they are A desire to work at companies with more growth opportunities
And research conducted by online recruiting agency en
Japan Inc. shows that a growing portion of these young jobchangers at big companies are going to startups, the ratio having
risen to more than 20 percent last year.
Sampson sees that among his clients as well. “Younger people want to take control of their lives more,” he said. “They havemore of an appetite for startup-type businesses, where people
can take the initiative, are more responsible for their own actions and output, and are not just taking orders from above.”

Flexibility Assumed
Jobseekers’ demands and expectations surrounding job flexibility are also changing. The first question that candidates ask
when considering a new opportunity is not about salary but
work arrangements, Sampson shared. “Pre-pandemic, flexibility
around work was a benefit that companies sold to attract talent,
whereas now it’s a must-have,” he said. “And if you’re not [offering it], you’re basically deterring talent.”
While many companies still place value on employees coming
into the office, partly to build corporate culture and network withcolleagues, jobseekers are gravitating to businesses that offer a

hybrid work style that allows them to work from home at least someof the time. After tasting work from home, some will accept only jobs
that are 100-percent remote, FocusCore Group’s Jelfs noted.
Teleworking has been especially welcomed by working
mothers, who say they are much better able to juggle their family duties. One single mother, whom Jelfs knows, loves working
from home so much that, if her company required her to startcoming back into the office, she would find another job that allows fully remote work.
These changing dynamics have driven another change:
decentralization. Some people who live and work in Tokyo
are moving to outlying areas—sometimes quite a distanceaway—either maintaining two homes or completely uprooting
themselves from the city. One of Jelfs’s candidates moved from
central Tokyo to Tsukuba, Ibaraki Prefecture, and once there
switched to a local job. Others have moved to the beach town ofHayama, south of Yokohama, or Karuizawa, in the mountains ofNagano Prefecture, he said.
Covid-19 prompted Tokyo’s population to decline to justunder 14 million last year, the first drop since 1996. If the trend
continues, this could contribute to the spreading out of Japan’s
population from urban centers, a long-time government goal.
“This is a shock to the system that Japan really needed
to initiate this sort of change,” Sampson stated. “Even us as acompany, we talked about more flexibility for years, but actually
doing it was painful to think about. But when we ripped off theBand-Aid and did it, it actually became quite simple. Everyone
adapted quite easily, and I think it’s benefited many people.”

Why are you looking to change jobs?
50%

To progress my career

43%

To increase my salaryTime for a change and totry something new

34%
30%

Poor company culture24%

I want to reskill

I want more flexibility
in my role

17%

Poor leadershipin the company

14%

To reduce my workload

9%
Source: Robert Walters Japan Salary Survey 2022 | www.robertwalters.co.jp/en/salarysurvey.html

THE ACCJ JOURNAL • VOL. 59 • NO. 1 • SPRING 2022

More Stratification
However, this greater freedom and flexibility has not extended
to Japan’s entire labor market. It is concentrated in white-collar
workers with regular, full-time jobs—a steadily declining breedin Japan. Workers in blue-collar, delivery, and factory jobs thatcannot be done from home, or at their convenience, have notseen this same sort of flexibility as a result of Covid-19, O’Day
pointed out.
In fact, for some of them, work and life have become harder.
Freelancers in Japan—mostly self-employed people with specific skills, such as photography, editing, or teaching music—
have seen their work and income decline during the pandemic.
And when the government offered financial aid to workers who
had lost income, freelancers received less help than full-time
employees. “To freelancers, that looked like a value judgment,”
said O’Day.
The job market is also not very friendly toward them. Whenfreelancers apply for full-time jobs, “many companies will discriminate against them—they think you’re somehow tainted or
there’s something wrong with you,” O’Day added.
So, in some ways, Covid-19 has widened gaps in Japan’slabor market, where big businesses are increasingly relying oncontract or part-time workers to cut costs. That’s given greater
flexibility to companies, but not to contract workers, who haveWith more people working remotely, the entire job search
process has become easier, recruiters said. They can searchfor openings online in the privacy of their homes and handle
multiple job interviews in a single afternoon. They don’t necessarily need to commit a big chunk of time to visiting various
companies’ downtown offices over several days for interviews,
although some employers still want to meet candidates in person, which recruiters say is a good idea.

Talent War
All these changing dynamics are coming amid perhaps one of
the tightest job markets ever in Japan, as the pool of workers
contracts amid an aging and shrinking population. Companies
are scrambling to get the best talent.
Even before the pandemic, capable candidates—from goodschools, or with a few years’ experience in a desired field—who
were looking to change jobs would receive many offers, Nakamura explained. “In the past, major companies could easily get
graduates from top universities, but that’s no longer a given.”Also, Japan’s tight immigration rules make it difficult forforeign workers to enter—a flow that has virtually ground to ahalt during the pandemic.
“Japan is facing the greatest talent shortage, really, in its
history, and it’s not going away with the shrinking population,”

JOBSEEKERS IN THEIR TWENTIES AND THIRTIES ALSO PLACE A
HIGHER PRIORITY ON DIVERSITY AND INCLUSION, AND WANTTO KNOW HOW COMMITTED COMPANIES ARE TO THAT … THEY
ALSO ARE MORE CONCERNED ABOUT WHETHER COMPANIES ARE
PROACTIVELY ADOPTING ENVIRONMENT, SUSTAINABILITY, AND
GOVERNANCE STANDARDS.
fewer benefits and less job security than those in the upperechelons of the labor market.

Shared Values
Covid-19 has also enhanced the desire among younger workers,
including some college students, to join a company that shares
their values and is doing something to contribute to society,recruiters said.
“Younger candidates are asking of companies, ‘What are
they doing in terms of sustainability? What are they doing forthe local community?’” explained Jelfs, who has been working
in Japan for 24 years. “Ten years ago, it would have been more
about salary and if it’s a prestigious company.”
Jobseekers in their twenties and thirties also place a higher
priority on diversity and inclusion, and want to know how committed companies are to that, Sampson remarked. Likewise,
they also are more concerned about whether companies areproactively adopting environment, sustainability, and governance standards, he added.
Businesses that aren’t able to offer more flexible work stylepolicies or give clear answers to questions about their values,
diversity goals, and contributions to society, may get shunned,
recruiters warned. A Robert Walters survey shows that half
the respondents would reject a job offer if the company’s values
didn’t align with their own.

Sampson added. “There really needs to be a more streamlined
process to accept and welcome foreign talent.”
Intense competition has emerged for workers with specific,
highly sought-after skills, such as English ability or computer
programming skills, recruiters said. Tech startups are appearing left and right, and established companies also needengineers to help them digitally transform their operations, so
for them it’s a candidates’ market.
“Companies are looking for Japanese candidates who arebilingual, who have a stable background, a solid record ofachievements in Japan, and are not a job-hopper. Once you factor all that in, supply is tight,” Jelfs explained. “Those kinds ofcandidates have three to five offers they can choose from.”
Businesses have become much more aggressive in trying
to retain employees by making counteroffers in the form of
promotions, transfers, or pay increases, according to Sampson.
“Companies are aware that it’s far more difficult and expensive
to replace somebody than it is to entice them to stay.”
Japan tends to change most dramatically in response to external shocks, and Covid-19 has proved to be a powerful catalyst,
setting in motion changes that will probably permanently alter
employee behavior, corporate practices, and even Japan’s business culture. “This is the beginning of what will be a long-term,
big change in Japan for sure,” Sampson said. n

THE ACCJ JOURNAL • VOL. 59 • NO. 1 • SPRING 2022

39

Still out there making surepeople have enough food.

Thank you.
SECOND HARVEST JAPANwww.2hj.org

LEADERSHIPBy Paul Walsh

Spirit of Yozan

41

How a samurai reformer inspires a new generation to take the lead and succeed

T

Clockwise from left: Yohei Sano,
Hiroaki Miyajima, and a statueof Yozan Uesugi in Yonezawa.
s

he death of a close friend at college prompted
Tohoku native Hiroaki Miyajima to pursue
a career in advertising in the United States.
Having returned to his hometown of Yonezawa,
Yamagata Prefecture, in 2011, he is now part of a local
business collective whose mission is to secure thetown’s future prosperity.

Place of Inspiration
Those not familiar with the Tohoku region, in the
far north of Japan’s main island of Honshu, may
be excused for being unaware of Yonezawa. But
this landlocked town has inspired some of thenation’s most successful executives and one of
the United States’ best-loved presidents. WhenJohn F. Kennedy was asked after his inauguration
to name a Japanese figure whom he respected,
to the surprise of the Japanese press corps he answered with the name Yozan, a clan leader who ruled
the domain of Yonezawa during the 18th century.
Yozan Uesugi inherited a Yonezawa impoverished by profligate leaders and entrenched interests.
Heavily influenced by his teacher, Heishu Hosoi, who
saw it as the duty of rulers to put the interests of their
domains above their own, Yozan swore an oath torestore the prosperity of Yonezawa and its people. He
is highly admired for his radical economic reforms
and being an exemplar of frugality.
In Yonezawa, the figure of Yozan looms large,
and in no place more so than Kojokan High School,
which he founded in 1776. The school seeks to instill

edible leaves can serve as a foodsource in times of famine. Use of
the shrub symbolizes the importanceof creative thinking and self-reliance, which
Yozan stressed to his people.
Collective member Yohei Sano, who helps withthe family fish market, has a background in legal
philosophy and studies local history in his free time.
Known as The Professor, he is a quiet contrast to theebullient Miyajima and provides Ukogi’s intellectual“I WANT TO MAKE YONEZAWA A PLACE TO WHICH
THE NEXT GENERATION WILL WANT TO RETURN
AND MAKE THEIR LIFE.”a sense of service and importance of action summed
up by one of Yozan’s most famous sayings: “For all
things, try and you will succeed; do not try and you
will not succeed. Lack of success is merely due tolack of trying.”

Intellectual Foundation
The Ukogi collective, established by Miyajima andseveral other Kojokan graduates, channels the spiritof Yozan in a bid to grapple with the issues facing
Yonezawa and many of Japan’s rural areas. The
name Ukogi is that of a deciduous shrub that Yozan
promoted for use in making hedgerows, while thefoundation. Synthesizing the virtues and lessonsof the past, he is developing the philosophy of a
restoration based on sustainable development andemploying public–private sector cooperation. Put
simply, Sano said, “I want to make Yonezawa a place
to which the next generation will want to return andmake their life.”
The speed of change in Japan can often be
glacial, but Yozan overcame the powerful social andeconomic forces of the 18th century to restore theprosperity of Yonezawa. Ukogi is aiming to instigate
a second restoration and make Yonezawa a place thatonce again inspires beyond its borders. n

Presented inpartnership with

Learn more about Ukogi
www.ukogi.or.jp

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FOOD

42

Words and photos by Kit Nagamura
Presented in partnership with the Yokohama Convention & Visitors Bureau
www.yokohamajapan.com

Ramen Romance
A flavorful world of history and innovation awaits you in YokohamaChinese noodles first gained popularity in Japan in 1859, when centuries of isolation ended and the portof Yokohama opened for international
trade. At the same time, a nationwide ban
on eating meat was lifted, bringing to thetable new flavors. To a bowl of basic Chinese-style noodles, Japanese chefs added
a slice of fatty chashu (braised pork belly)
and unique soup stocks made with local
ingredients, such as miso, kelp, bonito,
and clams. And in doing so, they created adelicious umami-rich dish now famous theworld over: ramen.

The Raumen Museum
Yokohama, a short jaunt south from
Tokyo, prides itself on serving some of
the country’s best ramen, and has twomuseums to celebrate the cheap, delicious, and filling meal.
Minutes from Shin-Yokohama Station, the Raumen Museum(the unique spelling reflects the way the word used to bepronounced) is a great place to start your ramen reconnaissance. This food-themed amusement park opened in 1994, thebrainchild of industrialist Yoji Iwaoka, who envisioned a truly
distinctive museum.
It’s ¥380 to enter the museum which, despite benches
shaped like ramen ingredients and a carpet decorated withnarutomaki fish cake, looks at first fairly ordinary. There are displays in English and Japanese that chart the history of ramen,
and several impressive exhibits that reflect regional specialties.
There are even several walls of various donburi (pottery bowls)
used throughout Japan. Of special charm is a reconstruction of
Rairaiken, the shop that set off Japan’s first ramen boom after
it opened in Asakusa in 1910. With the help of 13 Chinese cooksfrom Yokohama’s Nankinmachi, Rairaiken is said to have ladled
out between 2,500 and 3,000 bowls of ramen a day. The firstfloor also has a nifty gift shop, with a wide
variety of ramen-related goods, such asheat-n-serve packs, recipe books, ramenbowls, and even a curious treat called
ramen chocopuffs.
What really sets the Raumen Museum
apart, though, is found in the second basement. Stepping into this vast two-story
section of the museum is like discovering
a time portal; though you know you are
inside a building, you would swear you areoutside at dusk, walking the backstreetsof a bygone era. A huge central court, lit
by cinema posters, neon pachinko signs,
and light bulbs strung from second floor
living quarters, also holds half a dozen actual ramen restaurants doing brisk business. Before queuing there, though, besure to tour the backstreets of the town,
all along the periphery of the food court. You’ll find the alleyways
more intricately detailed than movie sets. The humble wooden
homes, speakeasies, candy store, tobacco shop, police box, andeven a phone booth add up to a realistic scene you’ll swear you’ve
actually been to, somewhere in Shitamachi. Attention to detail—a chalked hopscotch, children’s yukata hung out to dry, and apublic bath entrance (that’s actually an elevator)—evoke an era
when lives were more intimately connected, and community coalesced around a simple bowl of noodles with family and friends.
Museum founder Iwaoka’s son, Takuji explains that his
father wanted to recreate a 1958 retro townscape, not just for
nostalgia but also because that year marked the invention of
instant noodles by Momofuku Ando, a true turning point for theinternationalization of ramen.
Heading into the central square, snag tickets from a vending
machine for the ramen of your choice. The shops and selections
come from around Japan and change occasionally, but the important point is that you can choose regular or “mini portion” servings, which allow you to sample several of the shops’ offerings.
You might see homemade slabs of pork hanging here andthere, but vegetarian ramen options are also always on offer (tryKomurasaki, from Kumamoto). The variety of soups—usuallyin soy, miso, or salt seasonings and bases of pork bone, fish,chicken, or vegetable broth—make for infinite combinations.
The museum is a great place to develop your vocabulary andtaste for ramen, and the atmospheric setting might make you
yearn for the good old days of Japan.

The Cup Noodles Museum Yokohama
The year immortalized by the Raumen Museum’s fantasy
backstreets, 1958, is the same one in which Momofuku Andos

Explore the backstreets of a bygone era.

www.raumen.co.jp/english

THE ACCJ JOURNAL • VOL. 59 • NO. 1 • SPRING 2022

43

Craft your own cup.

srealized his dream of making instant ramen noodles. The wholestory behind Ando’s development of instant ramen is packaged
beautifully at the Cup Noodles Museum, a 12-minute walk from
Sakuragicho Station on the JR Yokohama Line.
The minimalistic red brick exterior of the facility, officiallyknown as the Momofuku Ando Memorial Museum, was conceptualized by Creative Director Kashiwa Sato to express “simplicity
devoid of the unnecessary” and to stimulate creative thinking.
The vast clean entryway features a 24-meter-high back wall that
extends up all five floors of the museum, and a white nebuta-stylefloat made of washi paper in the shape of Nissin’s popular product.
Corporate Communications Division Manager Kazuki
Tsurumaru notes that the facility “really looks like an art
museum”—an impression borne out by displays on the second
floor. One entire room, the Instant Noodles History Cube, hasa floor-to-ceiling exhibit of every variety of fast-food noodles,from Ando’s very first pack of Chicken Ramen to the items
currently on sale. There are also cup versions, some of which
include flavor variations sold in other countries. Tsurumaru
points out that the early packets of Chicken Ramen had little
windows, “so people could see what was inside, because they
didn’t know.” They sure know now.
The next exhibit, Momofuku’s Work Shed, is a faithfulrecreation of the place in which Ando struggled for a year to
create his invention. Tsurumaru reveals that it was Ando’s wife
who provided the catalyst for his breakthrough. “Ando watched
her cooking tempura and realized that, when the noodles werefried in oil, the moisture was forced out, making it possible topreserve them for a long time. He also discovered that hot water
poured over the noodles was absorbed through tiny cavities
formed during dehydration. The water seeped into the noodles,
restoring them to their original soft state.
The message here is that inspiration for inventions cancome from literally anywhere and that, even in humble surroundings, it’s possible to create something extraordinary.
Each of the exhibits on the second floor underlines Ando’s
thought process. An oversize cup with white noodles spillingout, for example, has words hidden in the noodles themselves,
encouraging viewers to look at things carefully and from all
angles. A nearby separate room helps children learn how greatideas can arise from simple tools, and that by using your noodle,
so to speak, you can come up with unique inventions by understanding the needs of others.
The third floor offers two hands-on experiences. One (reservations required, tickets ¥800) involves making Chicken Ramenby hand, starting with kneading,spreading, and steaming the wheat
flour and then drying it with aflash-frying method. The other(¥400 tickets sold at the entrance)
is a fun experience in which you
design your own Cup Noodles, fromillustrating the exterior of the cup
itself to choosing the soup flavors
and toppings. Children will love adding the likeness of Chicken Ramen’s
mascot Hiyoko-chan, made fromdried fish cake, to their concoction.
Staff then seal the lid, shrink-wrap
your creation, and place it in an “airpackage” that you pump into a nifty
pillow to safely tote home.

www.cupnoodles-museum.jp/en/yokohama

To round out the fun, the fourth floor has a fabulous
playground (check for current Covid-19 restrictions) where
kids “become” noodles in a factory. Nearby, the Noodles Bazaar
serves up noodle dishes from eight countries, from Kazakhstan
to Italy. The highlight here might be an outrageously confusing,but delicious, ramen ice cream!

Ramen Trick
After two excellent museums, you might want to sink your chopsticks into the ramen made at one of Yokohama’s independent
ramen shops. If that’s the case, Yokohama Convention and Visitors Bureau Management Planning Department Manager Shisei
Aoki has a recommendation: Ramen Trick, located a minutefrom the Blue Line’s Yoshinocho Station, Exit 3.
Despite the unsettling name and the informal atmosphereof the joint, decorated with bombastic rooster illustrations,the place is the real deal. Ramen Trick was opened in 2012by Noboru Nishigaki and his wife, Kazumi. “Before opening,”
Noboru recalls, “we were working in Chinatown, above the Trick
Art museum, and one day, we realized the word ‘trick’ sounded
like ‘tori-ku’ (eat chicken), so we chose the name.”
Puns aside, Ramen Trick is all about chicken—no other meatproducts are on offer—and if you visit between hours, be prepared
to see big plastic pails of chicken parts being prepped for the stock
pot bubbling away in the back of the kitchen. Three kinds of fowl,
including Okayama’s Sansui, Nagoya’s Cochin, and Yamanashi’s
Shingen simmer away with dried tomatoes and konbu (seaweed),bringing out unique umami notes. A quick glance at the walls
reveals the restaurant has prizes—including a Bib Gourmand
Award from Michelin—to back up
Aoki’s recommendation.
By all means, try the tokusei(special) salt-broth ramen (¥1,200).
In a light golden broth, the toppings include crisp fresh spring
onions, chicken meatballs, chicken
chashu, a sliver of red onion, both
halves of a meltingly soft ajitsuke(marinated) egg. For the salt ramen
dishes, the noodles, sourced fromnoodle-maker Mikawa Seimen,
include a bit of bran to add to theflavor and texture. Guaranteed,
after tasting this ramen, the main
trick will be to resist ordering asecond bowl on the spot. n

Ramen Trick serves up award-winning chicken flavors.

THE ACCJ JOURNAL • VOL. 59 • NO. 1 • SPRING 2022

The ACCJ
Is Working for You
During these challenging times, it’s more important

ACCJ members benefit from a virtual ecosystemthan ever to make sure you and your employeesthat helps member companies stay informed andstay connected, informed, and engaged, especiallyconnected, at a fraction of the cost of travel andwhen other professional development activities areconference fees. This invaluable resource includes

less accessible.

the following beneﬁts:
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If you would like to explore membership opportunities, including extending
these beneﬁts to an unlimited number of employees, contact join@accj.or.jp
for more details or call your ACCJ membership representative.

TAXATION

By Eiji Miura and Adrian Castelino-Prabhu

Trusts and Audits

45

How changes to Japan’s tax rules may impact individualsIn December 2021, the Japanese government
revealed its proposed changes to tax legislation.
Some of these proposals affecting individual
taxpayers are discussed in this column, together
with an update on how Covid-19 has impacted the tax
authority’s approach to inheritance and gift tax audits.

Assets and Liabilities Statement
The rules surrounding this reporting obligation, which
was introduced in 2015, have been amended to increase
the scope of taxpayers subject to the requirements.
The additions are aimed at minority share­holdersof large family corporations, such as an owner’s
Japan-resident spouse or children. If the shareholder
receives dividends and has no other source of income,the income tax can be settled through withholding
and no return is due. Previously, they would not have
met the requirement to file an assets and liabilities

requirements triggered by this amendment, which
will apply to reports due beginning January 1, 2023.

Presented inpartnership with

Audit Focus
In December 2021, the National Tax Authority (NTA)
released its annual audit statistics for 2020, showing
the impact of Covid-19 on its approach to onsite audits.
During 2020, the number of inheritance tax audits fellby 52 percent, from 10,635 to just 5,106. Of these, 551
related to overseas assets, with the NTA utilizing tax
treaty information exchange provisions and Common
Reporting Standards information to gather detailsof the assets. The average tax raised was ¥9.4 million
per audit opened, a 47-percent increase in the average compared with the previous year’s ¥6.4 million.
The decrease in audits was countered by a 58-percent increase in the number of simple investigations,consisting of telephone inquiries and correspondence

Eiji Miura is a partner at
Grant Thornton Japan
specializing in succession planning and international inheritance/gift
taxation for high-networth individuals.

Topic

Current Rule

Proposed Amendment

Obligation
to file• Taxpayers who are obliged to file an income tax return• Have income of greater than ¥20 million (excluding
retirement allowances)• Hold assets as of December 31 worth ¥300 million or more(or ¥100 million or more of securities subject to exit tax)

In addition to the current requirements, Japan-resident
taxpayers who, as of December 31, hold assets worth ¥1 billion
or more will also be required to file the statement, regardless ofwhether they are required to file an income tax return or theirannual income amount.

Filingdeadline

March 15 of the following year

June 30 of the following year

Mitigating
factors

None

If the statement is filed before notice of a tax audit is received,
it will be deemed to have been submitted by the due date.

statement, regardless of the value of their shareholding and other assets, but the proposed changes would
bring them within the scope of the report.
The changes are due to apply to income and assets

with taxpayers. There were 13,634 such instances in
2020, compared with 8,632 in 2019, while ¥650 million
in additional tax and penalties were levied. The movefrom onsite audits to simple investigations shows thatbeginning January 1, 2023 (January 1, 2024, for mitigating factors) with the first reports due in 2024.

the pandemic has caused the NTA to focus personnel
on audits with a higher chance of levying tax. The
remainder are being handled with remote inquiries,
seemingly a more efficient use of resources.

Trust Reporting Requirements
Another proposed amendment is to the trust reporting requirements that apply to Japan-resident trustees and trust corporations of domestic and overseas
trusts. Previously, if it was difficult to estimate thevalue of the assets within a trust, then the assets did
not need to be included in the filing. The reports are
required within one month of: Establishment or closure of a trust Changes in beneficiaries
 Changes in beneficial rights
Although there are no penalties for failure to file,individual trustees should pay attention to any filing

Takeaways
The tax reform proposals will affect individual
taxpayers in different ways but, for most, the change
to the filing deadline will reduce the administrative
burden of filing asset and liabilities statements andoverseas assets reports. Trustees of overseas trusts
will have to pay attention to the changes in reporting
requirements and be prepared to file reports containing estimated valuations. Finally, the increasein simple investigations is likely to mean that more
taxpayers receive calls from their local tax office. In
such cases, as always, seek professional advice on
how to respond to such requests. n

Adrian Castelino-Prabhu
is a principal at Grant
Thornton specializing ininternational inheritance/
gift taxation and tax advice
for corporations looking toenter the Japan market.

www.grantthornton.jp/en
info@jp.gt.com

THE ACCJ JOURNAL • VOL. 59 • NO. 1 • SPRING 2022

Corporate Sustaining
Member Companies
The ACCJ thanks these organizations for their extensive participation, which provides a cornerstone in the chamber’s efforts topromote a better business climate in Japan. Information as of March 18, 2021.

PRESIDENT’S CIRCLE

3M Japan Limited

Facebook Japan

Naigai Industries, Inc.

Abbott Laboratories/Abbott Japan LLC

Federal Express Japan Godo Kaisha

Nissan Motor Co., Ltd.

AbbVieFreshfields Bruckhaus Deringer Tokyo

Northrop Grumman Japan

Adobe KK

GE JapanNovartis

Aflac

Gensler and Associates/International, Ltd.

NTTAIG Companies in Japan

Gilead Sciences K.K.

Oak Lawn Marketing, Inc.

Amazon Japan G.K.

Goldman Sachs Japan Co., Ltd.

P&G Japan G.K.

Amway Japan G.K.

GR Japan K.K.

Pattern Energy Group LP

AstraZeneca K.K.

Hard Rock Japan LLC

Pfizer Japan Inc.

Asurion Japan Holdings G.K.

HiltonPrudential Financial, Inc.

Bank of America

IBM Japan, Ltd.

PwC Japan

Bayer Yakuhin, Ltd.

IHG ANA Hotels Group Japan

Qualcomm Japan LLC

Boeing Japan K.K.

IQVIA

Randstad K.K.

Bristol-Myers Squibb K.K.

Johnson & Johnson Family of Companies

Robert Walters Japan K.K.

Carlyle Japan LLC

KPMG

salesforce.com Co., Ltd.

Caterpillar

Kraft Heinz Japan

Squire Patton Boggs

Chevron International Gas Inc. Japan Branch

Lenovo Japan Ltd.

State Street

Citigroup

Lockheed Martin

Stryker Japan K.K.

Coca-Cola (Japan) Co., Ltd.

Mastercard Japan K.K.

Thomson Reuters

Cummins Japan Ltd.

McKinsey & Company, Inc. Japan

Uber Japan Co., Ltd.

Deloitte Touche Tohmatsu LLC

MetLife

Visa Worldwide (Japan) Co., Ltd.

Delta Air Lines, Inc.

Microsoft Japan Co., Ltd.

The Walt Disney Company (Japan) Ltd.

Discovery Japan, Inc.

Mitsuuroko Group Holdings Co., Ltd.

Western Digital JapanELC Japan K.K.

Morgan, Lewis, & Bockius LLPWhite & Case LLP

en world Japan

Morgan Stanley Japan Holdings Co., Ltd.

Zimmer Biomet G.K.

EY Japan

MSD K.K.

Want to join the American Chamber of Commerce in Japan?
We offer membership programs for entrepreneurs, executives, individuals, and companies of all sizes—
from small and medium-sized enterprise to multinational companies.
For details, visit accj.or.jp/join-us.

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