Note: This website was automatically translated, so some terms or nuances may not be completely accurate.
Xplorers2025 Report [2]The Meaning of Corporate Culture Transformation Seen Through the JAL Case Study
The "Xplorers" conference, exploring the forefront of business transformation, was held on Tuesday, August 26, 2025.This event brought together 100 leading transformation leaders to engage with the latest insights on business transformation, new business creation, and DX, fostering deep discussions among participants. This article covers the Platinum Presentation "The Meaning of Corporate Culture Transformation for Business Growth," which closed the conference.
The presentation featured Masashi Koyama from Dentsu Inc. (BX/HR), Mai Takahashi from DENTSU SOKEN INC., Yuji Saito (Executive Vice President and Group CFO, Japan Airlines), and Shunpei Iwao (Associate Professor, Faculty of Business and Commerce, Keio University). These four speakers—representing business executives, academia, and practitioners—shared their perspectives on "The Meaning of Corporate Culture Transformation for Business Growth."
In the BX domain, which supports fundamental business and cultural transformation, Mr. Koyama works daily on various corporate transformations. He noticed that many executives share a common challenge: "Even when implementing transformation initiatives, they don't lead to growth—such as changes in employee behavior or the creation of new businesses—and the transformation doesn't progress."In response, Mr. Koyama pointed out, "I believe two factors common to Japanese companies lie at the root of this challenge: the inherent resistance to change in corporate and organizational culture, and the tendency to start with system-building when implementing change." "To break this cycle, we must integrate employee mindset, behavior, and systems. The balance between these varies by company, so identifying it is crucial," he stated. He added, "While every company desires growth, the same methodology won't work for different companies. Only by understanding each company's unique culture and determining 'what to change and what to preserve' can a distinctive corporate culture be formed." Japan Airlines (JAL), where speaker Mr. Saito serves as Vice President. After experiencing bankruptcy in 2010, the company undertook internal transformation, achieving its highest post-bankruptcy profits in the fiscal year ending March 2025. Furthermore, it achieved increased revenue and profits across all segments. Fifteen years after bankruptcy. How did JAL change? Kazuo Inamori, then Chairman, identified two key challenges for JAL: "the absence of a corporate philosophy" and "a lack of transparency regarding the relationship between employee effort and results, and the failure to communicate management metrics to staff."To address these, he implemented a wide range of measures: establishing a corporate philosophy, conducting study sessions on the philosophy, providing leadership training, holding operational reporting meetings, and introducing a departmental profit-and-loss system. Regarding this, Mr. Saito stated, "Mr. Inamori advanced reforms in both the business structure and corporate culture, but he particularly emphasized transforming the corporate culture, focusing on fostering a sense of responsibility, unity, and profit awareness." Saito further explained, "Transforming the business is a surgical approach. Changing the corporate culture, however, is an internal medicine approach. Mr. Inamori believed that if the internal medicine aspect doesn't function, the surgical aspect won't either. Therefore, he prioritized transforming the corporate culture."Regarding the corporate philosophy "Pursuing the material and spiritual well-being of all employees," established as part of these measures, he explained, "It was absolutely necessary for all employees to work toward transformation with a shared perspective for JAL's revival. That's why I understand this phrase was included." He emphasized that aligning and unifying that perspective was a choice made precisely because they faced the immense barrier of bankruptcy. The second corporate philosophy proclaimed was "Contributing to the progress and development of society." This signified the stance of a company that had been given a second chance by society and, as such, would provide value and contribute to society. "Every employee thinks about the company with an owner's perspective. Providing employees with all information is a culture we've cherished and must continue to uphold. Underlying this is the conviction that, as a company that experienced bankruptcy and was given a second chance by society, we must provide value and contribute to society," said Saito. Mr. Iwao of Keio University's Faculty of Business Administration suggests that the decline of internal political factions underpinned this major transformation. "In so-called 'semi-public, semi-private companies' like JAL, incompatible cultures— —often coexist. Facing the reality of bankruptcy forced the entire company to fully embrace a business-oriented mindset. That's precisely why such rapid transformation became possible," he observed. JAL was able to change rapidly precisely because its underlying issues manifested as bankruptcy. However, many companies consider positive or future-oriented transformation before risks become apparent. Mr. Takahashi of DENTSU SOKEN INC. stated, "It remains difficult to drive transformation when a sense of crisis isn't shared by all employees," and introduced three key points to consider in such situations. The first is devising ways to instill a genuine sense of crisis and a management perspective among employees."For example, when we conduct surveys among employees about the company's challenges, improvement measures, and implementation, we often get model answers. But when we follow up with interviews to dig deeper, we sometimes discover questions like, 'Do they truly see this as a challenge?' or 'They answered they were taking action for improvement, but were they actually doing anything?' I believe it's crucial to devise ways to change the mindset of such individuals or help them realize these issues," he shared from his own experience. Second, avoid rushing into initiatives. This aligns with Koyama's opening point that "Japanese companies tend to start with system building." Takahashi emphasized, "Before rushing to initiatives, it's crucial to thoroughly assess the true root causes hindering transformation. Conducting interviews alongside surveys helps uncover factors blocking cultural change." The third point is HR data. "What goals do the interviewees set for themselves? What goals do they set for their subordinates? How is the engagement of their subordinates? I believe it's vital to pursue the essence by comprehensively interpreting surveys, interviews, and HR data," he stated. Next, the screen displayed the "JAL FUTURE MAP," released last summer. Dentsu Inc. also participated in its development. This MAP depicts the vision of a society realized by JAL, which has provided social infrastructure, refocusing on the value of "relationships and connections through mobility" in response to expanding social issues and changing business environments. Mr. Saito cited the difficulty of management in an era of change, stating that "if we continue doing the same things we've always done, we cannot maintain the same performance we have now," as the reason for taking a step toward new transformation 15 years after the major restructuring following bankruptcy. He went on to explain that the project began from the idea that it is necessary to see the air transportation business not merely as infrastructure, but to discover the essential value that this business itself can bring and the potential that JAL possesses. What new corporate culture does JAL seek as it transforms into a company that creates "relationships and connections through mobility"? Saito described it as "a thirst to pioneer new things to contribute to society." As more employees who haven't experienced bankruptcy join the company, internal discussions have emerged, such as "we should value their drive toward innovation more" and "we need to reexamine our philosophy for that purpose." It seems the new transformation has already begun. Mr. Saito emphasized the importance of corporate philosophy even amid transformation, stating, "Creating value for society is why we are needed and why we continue to exist," signaling a greater focus on social contribution. Responding to this, Mr. Iwao pointed out, "We have entered an era where every single employee must become a value creator." He added, "However, there are limits to what one person alone can create. We need to be an organization that enables this; an organization that is itself a valuable entity is what is required.When we transitioned from the Showa to the Heisei era, deflation set in. Back then, the key focus was on how much money could be earned. Corporate culture wasn't a priority. But now, with population decline making it difficult to increase headcount, we need a culture that enhances the capabilities of each existing employee. Simultaneously, we need a culture that attracts talent," he noted. "Listening to today's lecture reaffirmed the importance of advancing management with strong will, conviction, and the belief that 'growth is possible,'" said Mr. Koyama. "Dentsu Inc. intends to continue supporting the growth of companies in various ways, including in the area of fostering such resolve," he concluded. Was this article helpful? Share this article Newsletter registration is here We select and publish important news every day For inquiries about this article Dentsu Inc. Since joining the company, I have consistently served as a brand strategist, handling corporate branding and the accompanying corporate transformation, employee mindset shifts, business strategy, and development across diverse sectors including food, telecommunications, finance, beverages, cosmetics, home appliances, pharmaceuticals, and automobiles. He constantly considers "what value this company or business holds for society" from the perspective of multiple stakeholders surrounding the company and its operations—including not only customers but also the media and investors—while seeking ways to sustainably enhance corporate value. Dentsu Inc. After leaving Dentsu Inc. in 2010, she moved to the United States. Following the completion of her MBA and the birth and raising of her child, she returned to Dentsu Inc. in 2018. Drawing on extensive business experience—including her time as a systems analyst at a bank and her role in corporate strategy planning at an automotive company—she supports corporate transformation.
▼dentsu BX: Supporting Corporate Transformation and Growth with Diverse Approaches
▼Fifteen Years After Bankruptcy: JAL's Fundamental Corporate Transformation
▼Three Key Points for Implementing Positive Transformation for the Future
▼Embarking on New Challenges to Achieve the Envisioned FutureEmbarking on New Transformations dentsu BX supports corporate transformation and growth through diverse methodologies
Fifteen Years After Bankruptcy: JAL's Fundamental Corporate Transformation
Three Key Points for Positive Transformation Toward the Future
Challenging New Transformations to Achieve the Envisioned Future
Back Numbers
Author
Masafumi Koyama
Mai Takahashi
Also read
