COTEN Radio: Interview with Mr. Fukai on the Key to Boosting Japanese "Performance"

In today's world of diverse values, companies must go beyond simply providing good products and services. It has become crucial to clearly articulate their purpose and their significance within society. As this series has highlighted, "learning from humanities knowledge" is gaining attention, with companies incorporating "philosophical dialogue" into their corporate philosophy development and training programs.

This installment focuses on "History." Continuing from last time, we feature a dialogue between Ryunosuke Fukai of COTEN—who garners attention across fields for his sharp discourse rooted in "historical thinking"—and Naota Nakamachi of Dentsu Inc. Corporate Transformation Division. They discuss how Japanese people uniquely incorporate humanities knowledge, including history, and how to act upon it.

<Table of Contents>
▼Discovering "Japanese" elements within global culture creates high value

▼ "Physical knowledge" and "morals" are keys to enhancing Japanese performance

▼Why "human capital management" is now essential, learned from history's industrial structure dependence

▼Understanding our history and starting point leads to innovation

Discovering "Japanese" elements by examining global cultures creates high value

Nakamachi: In corporate branding, "purpose-driven management" first gained traction overseas, and in Japan, there seems to be a prevailing trend of having to catch up with this "overseas-style" approach. However, many long-established Japanese companies have founding principles that could be called a "purpose." Viewed this way, we could see ourselves as having been pioneers. Yet in Japan, rather than returning to that foundation, the mindset often becomes "we must newly adopt purpose-driven management as advocated overseas."

From your perspective, Mr. Fukai, who has deepened insights into humanities knowledge including history, what are the key points when incorporating such concepts from overseas into Japan?

Fukai: Anglo-Saxon countries like the US and UK have a culture that highly values "verbalization." On the other hand, we Japanese live in a culture that values physicality. While some are critical of "understanding through sensation," I personally believe "bodily knowledge" exists, and that Japan is a place where such knowledge is highly developed.

When incorporating foreign cultures and ideas, this Japanese characteristic comes through very strongly. It's difficult to acquire new things solely through "language" without letting go of the embodied knowledge we've acquired. Consequently, while we tend to fail at this fundamentally, the Japanese have historically had a culture of respecting advanced nations. We continue to adopt new cultures with that mindset.

I believe the Japanese mentality of seeking to adopt what is good is very important. However, I also believe that everything Japanese people have achieved successfully in the global society thus far has had "Japanese" roots. I have never seen a single instance where directly adopting Western things resulted in achievements comparable to those of the West.

In that sense, when considering adopting foreign elements, I think it's better not to focus solely on "Western" models as we have done before. Instead, we should learn from Islamic cultures, Asia, and Africa, discover what is "Japanese," and present that value to the world. While respecting advanced ideas is important, I believe the attitude of developing things based on our own lineage holds greater value than simply trying to adopt elements from a few advanced nations. In fact, everything currently valued and exported globally is distinctly "Japanese." I believe we should strive to create such things in every field.

"Body Knowledge" and "Morals" are the keys to enhancing Japanese performance

Nakamachi: You just mentioned the keyword "bodily knowledge." In Japan, when starting something new, there's a tendency to prioritize learning through "action" – like repetitive basic movements – where one feels "Why am I doing this?" – rather than starting by learning verbalized concepts as knowledge. Considering this, does acting first also suit our nature when it comes to corporate philosophy and vision?

Fukai: Yes. This is my personal theory, but the conclusion I can draw at this point is that "Japanese people perform best when their guiding principle is 'morals.'" I believe an approach based on morals is more effective for Japanese people than focusing on purpose.

Nakamachi: So you mean it's more effective to act based on a sense of "I must do this," like norms or etiquette, rather than working toward a future you envision as "how I want to be"?

Fukai: Ultimately, yes. Japanese people perform best when they act autonomously and in a decentralized manner, doing what they feel "should be done" for their peers or the people right in front of them, even if it isn't explicitly stated.

I believe morality was a major factor in the success of Japanese manufacturing during the period of high economic growth. The ability to continuously mass-produce high-quality goods stemmed from high collective moral standards. I don't believe these products were created by explicitly defining "high quality" and rigorously teaching it through employee training. For Japanese people, when they value "bodily knowledge" and maintain high moral standards, they become autonomously decentralized. They act based on their own moral compass rather than merely following orders from superiors. This also explains why the quality of Japanese service industries is consistently high.

Nakamachi: Indeed, when traveling abroad, I often notice anew the high level of Japanese customer service and hospitality. However, this differs from the Western job-based motivation where individuals work based on specialized knowledge and skills. High moral standards form part of the mindset that constitutes the core competency (the ability to outperform competitors in a company's field of activity) of the Japanese people, and they are also a condition for maximizing performance.

Fukai: At the core of Western thought lies the concept of the "individual." While Japanese culture contains elements of this idea, attempts to fully adopt Western concepts often prove difficult.

A major example is the phenomenon over the past 70 years where democracy and capitalism in Japan have not developed in the same way as in the US or the UK. However, I don't think the Japanese need to view this as "unlike the West, this is what's wrong." Rather, the time has come for Japan to forge its own path, aligned with the characteristics we've discussed. I believe that both corporate management and national governance should be advanced using approaches that align with the Japanese character, which values "bodily knowledge" and "morals."

Why "Human Capital Management" is Needed Now: Lessons from Japan's History of Industrial Structure Dependence

Nakamachi: Currently, "human capital management" is emerging as a critical issue for Japanese companies. How has Japan historically approached investment in and education of its people? Are there historical examples we can reference?

Fukai: When I consider this theme through historical insights, I believe the key lies in industrial structure. Society has productive activities and an industrial structure. For example, 300 years ago, the primary industry was fundamentally agriculture, and the types of human resources and resources valued depended on that structure.

In agriculture, farm tools, livestock like cows and horses, and human labor were vital. People with strong bodies who could work long hours were valued more than those with quick minds. Similarly, what resources are valued and how depends heavily on the primary industries within a society. The current emphasis on "human capital management" stems from the shift in industrial structure toward intellectual labor. Particularly, the field of "business development" has gained significant importance. Within this trend, human capital has become increasingly vital.

Some may disagree with this perspective, and indeed, I believe dissent is necessary. However, to hold such views and opinions, it is vital to study the humanities.

Understanding our own history and starting point leads to innovation.

Nakamachi: Are there any historical examples of organizations succeeding by valuing human capital and investing in people through education? Or if there were individuals particularly skilled in new business development, I'd like to hear about them.

Fukai: I believe Japanese people struggle to cultivate talent for new business development. Fundamentally, because they don't want to fail, standard performance tends to weed out failure. But new businesses can only emerge from failure, right? Of course, there have been times when Japanese people created new businesses, but such examples are very rare.

Looking at Japanese history, the people who particularly excel at this new business development capability tend to emerge during so-called "abysmal" times. For example, periods like the post-war era or the Bakumatsu, when society is collapsing. Kamakura Buddhism could also be considered new venture development for its time. Figures like Honen, founder of the Jodo sect; Shinran of Jodo Shinshu; Rinzai Gigen of Rinzai Zen; and Dogen of Soto Zen – all were innovators. While modern times are turbulent, society isn't collapsing. To drive innovation now, you need to act quite consciously.

Nakamachi: Taking risks to create something new is essential for business development talent. In Japan, significant change often occurs only when external pressure is applied. Many people might feel that taking internal risks to start something new during peaceful times, and having the organization back that up, is something we're not very good at. But that would mean we could only wait for a situation where society collapses to drive innovation. From your perspective, Mr. Fukai, are there any possible approaches?

Fukai: One benefit of studying history is understanding both what changes and what remains constant. Earlier, we mentioned that Japanese people have high moral standards, but looking at history, these weren't consistently high since ancient times. There was a significant shift as a group between the pre-Edo period and the Edo period.

We possess both originality and traits inherited from our predecessors; we are not entirely bound by the past. Whether we can change or innovate ultimately depends on our own will. It's about leveraging our unique strengths and lineage to consider what we want to become.

Therefore, it is crucial to understand our own history and starting point, and then consider how we wish to evolve from there. Rather than setting the ideas of other countries or people as our goal, I believe we can create something new and transform ourselves by aiming for an upgraded version of ourselves.