What is essential for "human resources" today?

Mr. Yosuke Yagi continues to propose the ideal form and structure for companies, based on his own career. If we were to express the theme he advocates in a single phrase, it would be "human resources reform." Without human resources reform, sustainable corporate growth is simply impossible. Many companies proclaim, "Our people are our greatest asset." But are we letting that treasure go to waste? In preparing this article, I attended Mr. Yagi's webinar (*) and also conducted an exclusive interview.

Old and young, men and women, people from other countries. Diverse personalities gather within a single company. We wish to explore the meaning of this, the joy it brings, and the future it creates, drawing insights from the initiatives of Sycom Brains, where Mr. Yagi serves as an advisor. With the conviction that each of us is not merely a "tool" crammed into the "box" of a company.

Written by: Web Dentsu Inc. Editorial Department

(※) Webinar titled "Learning Essential for HR to Lead Future Companies: Winning in the Post-Pandemic World with Yosuke Yagi," hosted by Saicom Brains. Details here.

Building on our previous interview, we posed this question to Mr. Yagi: "Japanese companies face various issues. Where do you think the roots lie for the so-called 'let's all work hard together' mentality, this 'laissez-faire attitude'? For example, is it due to being an island nation, or being an agricultural people?"

Mr. Yagi's answer was straightforward: "In a word, I'd say it's the shackles of the postwar regime. Nothing will change unless we break free from that. If we're talking about being an island nation, then Britain is an island nation, and so is New Zealand. Does being an agricultural nation mean we develop a lax attitude compared to hunter-gatherers? That's nonsense! Agriculture is practiced in most countries worldwide. Being an agricultural nation doesn't mean we can't implement strategic personnel reforms."

Yosuke Yagi:
President, people first (Former Executive Vice President, LIXIL Group)
Advisor, Sycom Brains
After graduating from Kyoto University's Faculty of Economics in 1980, he joined Nippon Steel Pipe Co., Ltd. In 1996, he was seconded to National Steel, where he assisted the CEO. He joined GE in 1999, serving as HR leader across multiple businesses. In 2012, he became Executive Vice President of the LIXIL Group. He served as a director for Grohe, American Standard, and Permasteelisa. In 2017, he founded people first and became its Representative Director. Serves as Outside Director of TBS Holdings and Auditor of GE Healthcare Japan. Also serves as advisor to several other companies. Author of "Strategic HR Vision."

As quoted previously, Mr. Yagi contends that the very dependency on the so-called "three sacred treasures" – seniority-based promotion, lifetime employment, and in-house unions – is the root of all evil. "Each of these systems functioned effectively in rebuilding the postwar Japanese economy and Japanese companies, particularly within some large corporations. Why? The reason is simple. It was the era of 360 yen to the dollar. That's how undervalued Japanese labor was internationally."

It's not that their abilities were low. In fact, they were quite high. So how could companies secure such excellent labor? Through seniority-based pay, through lifetime employment. In exchange for guaranteeing these, they were asked to work for low wages. "These methods remain ingrained in Japanese companies as successful practices. Even now, in this era of 100 yen to the dollar. There's absolutely no need for capable individuals to be tied to one company for life. If a company values them highly, they can go out and thrive anywhere – be it the major leagues or a Spanish club team."

This naturally leads to the question: What should performance evaluation truly be? "It's simple. Align the company's goals with the individual's goals. Then, shine a light on the people who have contributed to achieving those goals and those who will contribute in the future."

The expression "diligent effort seeing the light of day" is often used, but it simultaneously carries the nuance of "someone who just got lucky and somehow became the darling of the company."

"That's not the case. If someone is playing solo for goals different from the company's, it's meaningless, right? It's simply about having them excel where the company needs them. And here's the problem."

Got it. The problem is that surprisingly few companies clearly present that purpose. "First, it's essential to clearly articulate the company's vision. Employee engagement only truly begins there."

According to Mr. Yagi, one thing hindering employee autonomy is the feeling that "I can't decide my own career path." Even if training encourages career independence, most companies lack a system to seriously consider it when an employee says, "I want to do this." What is this tense, mutually chosen career formation between employees and the organization?

"Employee autonomy and the company's ability to effectively leverage it go hand in hand. When the organization clearly articulates its purpose, vision, and values, and employees resonate with them, a state emerges where 'my hard work benefits the organization too' – that is, engagement is born. It's crucial to enhance engagement through career development and transfers, thereby improving performance."

Remote work during the pandemic accelerated the independence of talented employees. Now is precisely the time to leverage these independent employees to boost corporate performance. Times of environmental change offer HR the chance to rethink and implement its ideal role. Yes, Mr. Yagi points out. We should sincerely embrace this message.

Psychom Brains' training program is available here.

●CCBP Development Program
~Developing transformational leaders who support individual careers and strengthen organizations~

●Next-Generation Strategic HR Leader Development Program

■Instructor Comment (Mr. Akira Sakai)

The events triggered by COVID-19 are being called a "career shock." Beyond the various environmental shifts surrounding work styles, being forced to work from home likely led many people to deeply reflect on their past and future lives and ways of working. At a time when everyone feels uncertainty about their career, the role of those providing career support is becoming increasingly important. This program addresses these needs. Through rich, multifaceted input from a diverse faculty unmatched by other programs, combined with stimulating collaboration among participants of varied roles and generations, it enables you to update the mindset and skills essential for future career support professionals.

■Instructor Comment (Shu Yamaguchi)

In an era where past "correct answers" and "standard approaches" no longer apply, the qualities demanded of people have dramatically changed. What is needed now are individuals who can proactively identify problems – people with "meaning." Meanwhile, Japanese work styles have reached an abnormal state, ranking among the lowest globally in job satisfaction. The arrival of the unprecedented COVID-19 situation has brought these underlying issues to the surface. Now is precisely the time for career support professionals—those who leverage human resources, the greatest asset within companies—to step up. Sharing the vision behind this course, launched with this awareness, I am honored to participate as an instructor. I look forward to discussing ways to improve future work styles and careers with all of you who share this aspiration.

For this article, we enlisted the writing skills of Yosuke Yagi and requested supervision from Akira Sakai (Creative Journey Representative / Dentsu Inc. Alumni Network Manager), a former Dentsu Inc. employee.

The website for Creative Journey, led by Akira Sakai, can be found here.

Akira Sakai:
After joining Dentsu Inc., he worked as a copywriter, in sales (automotive division), and in the marketing promotion department. He was stationed in Singapore (Asia Regional Office) from 2004. After returning in 2011, he worked in the global division, then in the Human Resources Bureau and Career Design Bureau, where he was responsible for career development initiatives. He retired in March 2019 and started his own business in April.

The interview article featuring Mr. Akira Sakai and Mr. Daimon (then of Dentsu Inc. Career Design Bureau) on Alumnavi can be found here.