Purpose is nothing more than a hypothesis.

The book "How to Build Identity" (published by Cross Media Publishing (Impress)) was so fascinating that Dentsu Inc.'s Takao Yamada urgently arranged an interview with its authors, Hironobu Moriyama and Taro Kagami. Their work revealed major discoveries that overturn conventional business wisdom.

<Table of Contents>

▼The Journey to Creating the Identity Academy

▼ "Identity" is Nothing More Than a Hypothesis

▼A Dojo to Hone "Identity" Through Practice

▼A Community of Dialogue to Nurture "Identity"

▼Considering an Organization's "Identity"

▼The Future of the Identity Academy
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The Journey to Creating the Identity Academy

Yamada: I heard that Mr. Kagami, who was also a colleague at Dentsu Inc., wrote a book called "How to Build Identity" with a financial professional.

"Identity..." I thought, "Is this the birth of yet another new buzzword?"
"How to build..." Is this one of those how-to books promising success if you follow these five steps?
To be honest, I started reading it feeling a bit gloomy (laughs).

Fortunately, I quickly realized that was an unnecessary worry. Well, I found it very interesting indeed. But before we talk about the book, could you tell us about the " Identity Academy" project you two run? It's based on financial risk management thinking and focuses on "designing decision-making," right?

Moriyama: My previous job was at Goldman Sachs, where I worked in trading for about 21 years. To put it simply, it was a job where I made money buying and selling within a "cage." It was enjoyable and satisfying, but...

During that time, I saw many entrepreneurs in their twenties. The kind of "fashion entrepreneurship" where people say they "got a job as an entrepreneur"—well, those tend to collapse quickly. That's when I realized, "Ah, it's because they never had the chance to train in decision-making. It's no wonder they end up like this."

Moriyama: My specialty is "decision-making" theory, specifically "scenario analysis" – building numerous hypotheses about an "uncertain future" and conducting objective analysis. But their ability to do this was fundamentally weak. That's why I started the "Identity Academy," aiming to systematically teach this to university students.

Yamada: That's when Mr. Kagami joined—someone who had worked as a copywriter at Dentsu Inc., then studied architecture at Harvard Graduate School, and had already started his own business. How did two people with such different backgrounds end up working together?

Kakami: I think we joined forces in October 2020. Simply put, a big factor was that I myself was in a situation where I had "lost my identity" (laughs).

At the time, I was riding high after building a hotel in Ningyocho based on the concept of a "stayable tea room." But then the pandemic hit just one year later. I was truly lost and confused when Mr. Moriyama told me about the Identity Academy. That became the catalyst for me to reflect on myself.

What was lucky for me was that I'd always loved Rem Koolhaas, this Dutch architect who writes. I had this feeling like, "Man, that guy's life is just so cool." That's how the "hypothesis" emerged: to keep architecture as my anchor while simultaneously training as a copywriter at Dentsu Inc.

But talking with students, I realized having such an idol is actually quite rare. Everyone was asking things like, "Should I go into consulting first?" or "Is Bitcoin the next big thing?" Their entire frame of reference was based on what others had told them.

Even Tokyo University students sometimes abandon thinking for themselves. I realized that design thinking and creative approaches—my specialties—could be used to train this ability to "form hypotheses from one's own perspective." That's how I connected with Mr. Moriyama.

Yamada: So it's like a "training ground for hypothesis-based decision-making"? Was the name "Identity Academy" your copywriting, Mr. Kagami?

Kagami: No, Mr. Moriyama said from the start, "It really is about identity, isn't it?"

Moriyama: Even in the first company overview we created, we wrote something like, "If you ask why people live, it's for their identity."

Yamada: So "identity" was the keyword from the very beginning. That's really interesting.

"Identity" is only a hypothesis

Yamada: By the way, how does the Academy define "identity"?

Moriyama: We define identity as "what you do with pride, or the person you aspire to become." It's "the result of a series of decisions made to break free from the shell of common sense and fixed notions, steering toward a future you desire."

In Japan, people often misunderstand that a "title" like "Managing Director at Goldman Sachs" is their identity. But if that's the case, you can't grow beyond that title.

I believe identity is something more subjective and personal—something not necessarily "impressive." For example, watching TV, there are moments when you feel intense "jealousy," thinking, "This person's way of life is wonderful." Behind that jealousy lies identity. Because jealousy is precisely the result of your own value judgment. In that sense, identity doesn't necessarily need to be impressive words meant for others to see.

Kakami: If that jealousy is the starting point, the next step is realizing that "you won't discover your identity unless you start doing something."

As I mentioned earlier, I admire Rem Koolhaas, the "architect who writes." So, after studying architecture in university—where most people would naturally proceed to graduate school—I formulated a hypothesis: what if I became a "copywriting architect" first? That might reveal a unique world to me.

Then I joined Dentsu Inc., got assigned to the creative department, and started writing copy. But at first, I had no idea if choosing that path was right. Gradually, as people around me started praising my work, that hypothesis I started with—"Is this what I want to do?"—transformed into my actual "desire."

That's why I tell students, "Seriously, start small." You won't know what you want to do until you actually start doing it.

Yamada: "You won't know what you want to do until you start doing it"? That's great. You could probably write another book with that title (laughs).

Generally, when we talk about "identity," it's seen as something to "establish" – something noble that must never waver, like an unshakable "correct axis." But you're saying identity is just a "hypothesis" mixed with subjectivity, and you can only truly grasp it by "putting that hypothesis into practice."

A Dojo for Forging "Identity" Through Practice

Yamada: How do you teach this approach to building identity at your academy?

Moriyama: In this project, we essentially want to cultivate "people who are useful in real-world situations."

But before the real battle or official competition, there are practice matches, and before those, there's stretching, warm-ups, and basic training, right? So, "classroom learning" is probably like that basic training or stretching. But young people in Japan often skip the practice matches and jump straight into the official competition. So, losing in the first round is almost inevitable, and this really takes a mental toll. That's why we provide them with a "dojo" – a place to have practice matches before the real battle or official competition.

Under the watchful eye of instructors who've navigated countless decisions, students are handed millions of yen and told, "Manage this," or they're challenged to tackle current corporate issues rather than past case studies.

Initially, students tend to base their decisions on their majors or areas of expertise. At such times, we stimulate them with suggestions like: "Humanities majors, try doing some math. You'll surely discover interesting aspects you never noticed before. Math whizzes, take a look at history. You'll find connections there too."

Then, as they progress with teamwork, a chemical reaction gradually starts to occur.
"I can't beat him with a purely mathematical approach, but what if I tried this?"
"What happens if I blend my strengths into her approach?"

The way to win in the "mixed martial arts" of decision-making naturally differs for Person A, Person B, and Person C. But through the process of desperately fighting to win in the practice matches at the "dojo," the students themselves learn their own unique decision-making methods. And by repeating this, they gain their own distinct "identity."

Yamada: Listening to this reminded me of something world-renowned management scholar Professor Ikujiro Nonaka once said.

According to him, the Greek philosopher Aristotle classified knowledge into three types. One is "episteme," which refers to knowledge of objective, universal truths. The second is "techne," the know-how of applying practical skills to create something. However, these two alone are insufficient. The final category is "phronesis," the wisdom to make the best judgment "here and now." Because phronesis can only be gained through practice, it is also called "practical wisdom."

I understood that the Identity Academy trains "phronesis"—the wisdom to make the best judgment "here and now"—through the "practice" at the dojo prepared by Mr. Moriyama and Mr. Kagami. It's essentially a "dojo of phronesis."

Moreover, this phronesis is a concept Western philosophy had long forgotten. In other words, it's an immensely important yet untouched domain. The theme the two are tackling is truly that significant.

Honestly, I used to think the world of finance, including trading, was a profession that coldly and mechanically repeated purely objective judgments using advanced mathematics (laughs). The very idea that subjectivity and values play such a significant role is a huge surprise.

Moriyama: I believe trading and risk management aren't just about making money, as many assume, but represent a much more versatile way of thinking. That's what I teach. But I never imagined it was Aristotle's "phronesis." I'll read Professor Nonaka's book immediately (laughs).

Kakami: The fact that none of us instructors, myself included, receive a single yen in compensation probably stems from the core purpose of Identity Academy: It has a grand vision. Both students and instructors find happiness simply in belonging to this community.

A Community of Dialogue Cultivating "Identity"

Yamada: Hearing that makes me want to dig deeper into how the academy operates. What specific approaches do you use to spark that chemistry among participating students?

Kakami: What I always emphasize at the start of every session is that "the person who comes up with an idea doesn't inherently hold any real value." Because the goal is to achieve the best possible outcome, and the key to that lies in how far the team can progress together. There's no time to squabble over "who's the smartest."

Moriyama: Back in the day, I once selected a group of members who were all exceptionally capable and very assertive. When I put them in a group of five, they didn't blend at all and ended up fighting. Because of time constraints, someone's idea would get adopted, but the rest of the members would sulk and refuse to participate (laughs).

Realizing that wouldn't work, we started using something like personality compatibility tests. Selecting five people based on compatibility made things relatively more interesting. Of course, sometimes it still fails.

Kagami: Ideas never emerge from the group itself; they always start in one person's brain. When the other members feel a mix of jealousy and "somehow, I believe in this," a kind of "mini-religion" forms among the five. When you get a group with that kind of unity, they become truly powerful.

Yamada: Apologies for bringing up Professor Nonaka again, but he says groundbreaking new perspectives that overturn common sense can never emerge from a place where everyone objectively agrees. The starting point is always the first-person "subjective." To elevate that to a third-person "objective" perspective that can withstand third-party analysis—like whether it will sell, win, or make money—it must first pass through the second-person "empathy."

"Empathy" is precisely the fruit of thorough "dialogue." And what's indispensable to that dialogue, he says, is a state of "indwelling" within the other person. There, differences between self and other vanish, even the flow of time ceases—all that remains is the earnest contest of "here and now." At the Academy, by rigorously accumulating this "dialogue" that generates "empathy" within the dojo, we aim to help each person discover their unique identity.

Kakami: A student once told me, "Ultimately, what you're doing here is 'self-other non-duality' (Jitahu ni)※. That's Buddhism, right?"

Yamada: Wow. Just how brilliant are the students you're gathering here?! (laughs). I now clearly understand that identity isn't some grand "correct axis," but merely a "hypothesis," and that it can only be obtained through "practice."

※Jitahuni: A Buddhist concept expressing the idea that while oneself and others are distinct individuals, they are fundamentally inseparable.

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Considering an Organization's "Identity"

Yamada: That leads to my question. This book also states that an individual's "identity" is the same as an organization's "purpose." However, when you actually look at the purposes of various companies, it often seems like lofty, universally uncriticizable "correct principles" are discussed in boardrooms detached from daily practice. Worse, they're often set as if they were an unchanging "correct axis" for all eternity.

How do you view this reality, which diverges from your previous assertion that "purpose is merely a hypothesis"?

Moriyama: I understand very well why it has become this way. Over the past decade or so, the capital markets have demanded "correct management" aligned with "global standards" at an incredible pace to maintain stock prices. In this environment, many executives may be engaging in various wordplay while inwardly worrying, "Huh? This kind of righteous talk doesn't capture our company's strengths."

To reiterate: neither individuals nor organizations need their identity to be expressed through impressive rhetoric meant for public display.

Kakami: Talking with Mr. Moriyama, I found myself thinking, "Yeah, that's right."
Whether it's SDGs, diversity, or clarifying your company's purpose, the fundamental goal is to improve your company's performance. These are adopted because they are seen as necessary means to achieve that end.

But in many organizations, I feel they're trying to make these the "ultimate goal." Naturally, this creates strain. We can generate sustainable profits precisely because we share values with society; there's no need to feel ashamed of making a profit itself.

Yamada: So, it's through the tough, day-to-day decisions made right here and now, in the pursuit of sustainable profit, that an organization's true "essence," "identity," and "purpose" become visible.

The reason a purpose set as an "absolute, unshakable axis" often fails to permeate an organization is likely because it hasn't become a "hypothesis" worthy of verification through daily practice.

The Future of the Identity Academy

Yamada: So, how do you two plan to nurture this "Identity Academy," which could be called a "dojo for phronesis," moving forward?

Kakamigahara: I believe there is no ultimate answer to "identity."
In the world of architecture, both young talents and masters alike repeatedly experiment and refine their approaches. If you think, "Iron architecture!" Richard Meier has already done it. Concrete? Le Corbusier. Bamboo? Kengo Kuma. It's a demanding world where the challenge lies in how to map your own path.

It's always relative, an endless journey with no absolute right answer. That's precisely why I want to cultivate the Identity Academy into a "high-quality community" that provides support during such times.

Moriyama: As Mr. Kagami said, the ultimate goal is building a high-level community that endures forever. But saying that makes it sound like some shady religious group (laughs). Talking like we are today is incredibly fun, but I have a huge responsibility to make the output visible – to show what exactly your academy produces.

First is the "high-quality community" Kagami just mentioned. Second is accumulating real-world examples where students who join us suddenly decide to study abroad, change jobs, or experience a dramatic shift in their environment.
And the third is that people who gain practical skills at the academy send something tangible out into society. This is the final phase, and I believe it's the most important.

Kakami: Like the Matsushita Village School.

Moriyama: Exactly. We envision an ecosystem where the success achieved there feeds back into the academy, supporting everything from tuition fees to all other aspects.
We're seriously striving towards that goal.

Yamada: What an inspiring story. Without exaggeration, the future of Japan and the future of the planet rest on the Identity Academy.

I was all excited and pumped up... but now I'm getting hungry. How about some delicious Western-style cuisine for lunch?

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We filled our stomachs with Western cuisine at Tsukiji and parted ways. As my still-excited brain sorted things out on the swaying Hibiya Line,

The biggest surprise was learning that "in the trading world, being yourself is what's demanded." Honestly, I'd assumed the financial world was the most "cold-hearted" and "mechanical" place, just because it uses advanced mathematics. The fact that behind each trader's tough decisions lies a solid "sense of self" (identity) was refreshing.

Given this background, every aspect of the educational program at the Identity Academy made perfect sense. "Identity" is a hypothesis that only emerges through the accumulation of decisions (practice) made in the "here and now."

And to nurture it, serious "dialogue" within a community possessing high-quality, diverse backgrounds is indispensable. Indeed, I could truly feel that this is precisely the process by which a young individual acquires their "identity."

On the other hand.

The fundamental tasks for organizations and individuals should be the same. In other words, an organization's "purpose" should also be nothing more than a hypothesis. Yet, the stark reality of how things have gone awry became painfully clear. As Mr. Moriyama pointed out, pressures like "global standards" likely play a role. However, I was struck by the realization that for Japanese companies to regain their vitality, they must escape the trap of "noble-sounding platitudes" lurking within many organizations.

Due to time constraints, our discussion focused mainly on the Academy, but the book "How to Build Identity" is packed with its essence. It contains profound insights that challenge widely held "conventional wisdom" and offer significant hints not only for individuals but for any organization seeking growth.

Please enjoy!