Adapt, Innovate, Discover, Connect

New Wai Gaya platform supercharges ACCJ networking

One of the greatest strengths of our international business community is the varied experiences and skills of our members. I’m proud of the way in which the American Chamber of Commerce in Japan (ACCJ) has transitioned to a virtual environment that allows us to serve the needs of the membership through a robust schedule of events and meetings. But, during the pandemic, tapping into our network for a less formal exchange of ideas and expertise (the way we would during coffee breaks in more normal times) has been a challenge.

This month, we’re launching a pilot project to help members discover and connect with other members. We’re calling it Wai Gaya, a term coined by Honda Motor Company, Ltd. for their practice of convening impromptu meetings among colleagues. At these gatherings, everyone is encouraged to share their ideas—regardless of role or seniority. Wai wai gaya gaya is also a Japanese expression used to describe a lively environment, such as an izakaya, filled with conversation—the words being onomatopoeias meaning chatter—and that’s exactly what we aim to create among members.

Supercharged Networking

Maybe you’d like to find members who have experience negotiating rents with commercial landlords. Perhaps you want to bounce around ideas on a specific business challenge with members who are facing a similar issue. You may want to get some sound advice on how best to leverage your experiences in Japan to take the next step in your career as an expat. Or maybe you’re looking for new business partners and simply want to expand your network.

Using the Wai Gaya platform—developed in-house by the ACCJ—any member can suggest a topic for conversation. The topics will be promoted in our Insider email and can be reviewed on the Wai Gaya website. If you see a conversation in which you would like to participate, just click “I’m interested.” Once three members express interest, we’ll open the ACCJ’s Webex videoconferencing platform to schedule a meeting among up to 10 interested members. We’re keeping the number of participants low to ensure that all parties have a chance to interact.

Nimble Ideas

Inspired by the world of startups and minimum viable products, we’ve built Wai Gaya in-house using a “no-code” platform. This new capability allows us to test ideas without investing a lot of time or resources in their creation. If the membership sees value in Wai Gaya and engages with it, we’ll enhance the platform’s functionality. If it doesn’t take off, we’ll shift our efforts to other new ideas based on input and ideas from the membership.

Beyond Events

Planning and presenting formal events remains the responsibility of ACCJ committees. What Wai Gaya does is provide a venue for those topics and conversations which lend themselves better to conversation rather than presentation.

We all look forward to the day when we can return to in-person meetings, as well as the introductions and chats that happen over coffee during the in-between moments of our events. Our hope is that Wai Gaya will fill this need—at least in part—and that the Wai Gaya model might provide value to the membership even after we emerge from our current virtual mode.

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Wishing You a Happy Independence Day

Greetings to readers of The ACCJ Journal from the US Embassy Tokyo

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Happy Independence Day to our partners and friends at the American Chamber of Commerce in Japan (ACCJ). On the 245th anniversary of the adoption of the Declaration of Independence, the democratic values that underpin the US–Japan alliance continue to bear fruit. Reflecting on the year thus far, we have much to celebrate as our bilateral ties with Japan remain strong. Just as the Declaration of Independence symbolizes peace and prosperity for the American people, the US–Japan Alliance promotes these same values in the Indo–Pacific and across the world.

Steadfast Friendship

The United States and Japan ushered in the year with strong symbols of our steadfast friendship, exhibited through several firsts. In March, Secretary of State Antony J. Blinken and Secretary of Defense Lloyd J. Austin III visited Tokyo on their first trips overseas as Cabinet officials, participating in the Japan–US Security Consultative Committee (2+2). Their visit reaffirmed the enduring strength of our security partnership and its contributions to peace, security, and prosperity in the region and beyond.

We solidified our close bond with Japan when President Joe Biden welcomed Prime Minister Yoshihide Suga as the first world leader to visit Washington. During the visit, the two leaders launched the Competitiveness and Resilience (CoRe) Partnership—as well as the US–Japan Climate Partnership—and pledged to work together to address the global threats posed by Covid-19 and climate change, while resisting challenges to the free and open rules-based international order.

We will need your help in implementing these initiatives and realizing their success in areas that range from boosting innovation and cooperating on research and development to securing critical supply chains.

Finally, we celebrated US–Japan cooperation in space. We witnessed the simultaneous presence of two Japanese astronauts aboard the International Space Station for the first time since 2010. One of the Japanese together with three other astronauts were then ferried from the space station by a commercial SpaceX ship.

One of the Strongest Relationships

The United States and Japan continue to be top trade and investment partners. Our close economic cooperation supports open and competitive energy markets, the digital economy, secure 5G networks, space exploration, and a wide range of emerging technologies.

Of course, we are still grappling with Covid-19, but vaccinations are helping our economies and societies recover. Throughout the pandemic, the United States and Japan have demonstrated that close cooperation in tackling global issues is emblematic of our strong relationship. As we have worked to vaccinate the people in our countries, we have also partnered to ensure the rest of the world has access to vaccines through the COVAX Advance Market Commitment.

I continue to be impressed by the ACCJ’s contributions to our strong economic ties, and your efforts to mitigate the impact of Covid-19. Your leadership—particularly in the areas of digital transformation and pharmaceuticals—has been invaluable in helping to promote hope and prosperity amid this crisis.

Shared Values Tie Us Together

As the two largest market economies in the world, our commitments to defending freedom, championing free and fair trade, promoting diversity and inclusion, and upholding human rights are rooted deeply in our shared values. The ACCJ has played a critical role in strengthening the bonds between our countries, deepening our economic ties with Japan, and advocating for the US business community.

As President Biden and Prime Minister Suga recently affirmed, “an ocean separates our countries, but commitments to universal values and common principles—including freedom, democracy, human rights, the rule of law, international law, multilateralism, and a free and fair economic order—unite us.”

Let us take this Independence Day to celebrate what unites us.

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Staying Focused on the Fundamentals

The keys to successful investment in Japan

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“If you get the earnings right, you’ll get the investment right.” This was the advice given to me by one of the greatest investors of all time, Julian Robertson. He is the founder of the famous Tiger Fund, which, throughout the 1990s, battled with investment shark turned philanthropist George Soros for the top position as the world’s biggest and best-performing hedge fund manager. To be a successful investor, cut out the noise and don’t get distracted by smart-sounding stories or headline-grabbing advice. Stay focused on the fundamentals.

Local Success

Applying this rule to Japan, the first questions we must answer are:

• How does Japan, Inc. make money?
• Where do its earnings come from?

Importantly, the answer is “not from Japan.” For companies listed on the Japanese stock markets, about 64 percent of corporate profits are created from global sales and operations (i.e., exports or offshore production and sales). From a top-down macro perspective, a successful investment in the Japanese stock market is far more dependent on global economic fortunes than on what goes on at home, in Japan.

In fact, Japan’s dependency on the world has gone up since the start of Abenomics in 2012. Ten years ago, about 50 percent of profits came from global markets. The rise from 50 to more than 60 percent is primarily due to Japanese banks and financial firms. Over the past decade, they have become more active overseas—particularly in Asia.

It is a little-known fact that Japanese banks have been the largest provider of credit in non-China Asia for three years running. At the same time, banks’ domestic profit margins are being squeezed by the cap on bond yields forced by the central bank. If interest rates are not allowed to rise, banks cannot grow their profit margins. To get bullish on Japanese financials in general—and banks in particular—we need to see an end to the Bank of Japan’s current policy of yield-curve control (i.e., allowing 10-year bond yields to rise).

Currency Sensitivity and the Hedge Imperative

Further, Japan’s major dependence on the ups and downs of the global economy makes Japanese profits highly sensitive to the currency. When the yen rises, overseas earnings translate into lower yen-based profits. When the yen drops, the yen profits get a nice windfall. Statistically, for every ¥10 of depreciation, Japanese corporate earnings get a boost of about eight percent (if the depreciation is sustained for six or more months).

In other words, the weaker the yen, the better Japan’s corporate profits; and the better Japan’s corporate earnings, the higher the stock market.

For global investors who calculate their returns in US dollars, the combination of Japan’s high dependence on global growth, and the inverse relationship between the currency and Japanese earnings, dictates one very clear piece of investment advice: always currency hedge your yen equity positions. Chances are high that yen-denominated Nikkei gains will translate into much lower US-dollar gains because, basically, the Nikkei only goes up during periods of yen depreciation and dollar strength.

Here we can learn from another master investor: Warren Buffet. Last fall, when he famously initiated his first significant investment in Japanese stocks in more than a decade, he did so on a fully currency-hedged basis. And it has paid off handsomely so far. The yen value of his position is up 20–25 percent, despite the yen being down five to six percent. Without the currency hedge, his performance would be one-quarter to one-fifth less than it is with the currency hedge. In my view, hedging the currency is imperative for best performance if, like Buffet, you measure your returns in US dollars.

Leadership Matters

Of course, this is just the big-picture macro lesson for anyone considering an equity investment in Japan. From here, we’ll have to enter the exciting world of stock-picking, of selecting companies that display high potential for generating rising profits and superior returns.

I am not allowed to go into details and offer advice, but I can leave you with one suggestion: focus on the leader, the CEO. In the end, Japanese corporate performance is dictated primarily by the quality, vision, and aggressiveness of the top-level executives. After decades of misery, Sony Corporation turned itself around when the charismatic Kazuo Hirai took over, and Hitachi Ltd. did so when superstar manager Hiroaki Nakanishi stepped in.

These are just two such success stories. While Japan may well despise and not tolerate the superstar CEO cult so essential to US corporate culture, the reality is that Japan’s consistent top performers and turnarounds can be traced back to an individual star CEO and their leadership style. You won’t find their names in bright lights, in the papers and magazines, or at Davos, but they do exist. Finding them is half the fun and a rewarding part of investing in Japan.

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Investing in Smart Agriculture

Japan startup Sagri is transforming family farming with AI

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Artificial intelligence (AI) gets a lot of attention these days, but its application to farming is not often in the spotlight.

Recently, I had the opportunity to talk with Shunsuke Tsuboi, chief executive officer of Sagri Co., Ltd., which uses AI, machine learning, and mapping technologies to solve social problems.

On my podcast, Disrupting Japan, Tsuboi and I discussed the challenges that agricultural technology (agtech) startups in Japan face when it comes to funding, as well as the benefits of their technology.

Taking Root

Sagri was founded in June 2018 and uses satellite imaging and data to analyze farmland. The technology scans areas of up to 10 hectares in size, making it particularly suited to Japan, where farms are generally small. The data can be accessed using a smartphone app, and the goal is to help farmers better understand the condition of their soil and identify the best time for harvesting.

The idea for the company took shape in a laboratory at Yokohama National University, where Tsuboi is a mechanical engineering graduate student. His lab is using space-based technology to examine soil, and he and his business partners have been able to apply some of this to their platform, which shares the name of the company.

Applications

If you’ve walked around the Japanese countryside, you’ve probably seen small plots of abandoned farmland. Sometimes these even intermingle with residences in neighborhoods not far outside the capital.

Whether farmland is in use or abandoned makes a difference from a tax perspective, so the government manually checks the status of land each year. The AI behind Sagri’s analysis can determine with 90-percent accuracy whether a field is abandoned, drastically reducing the amount of work required of government staff.

Apart from taxation, the government is also interested in identifying farmland that can be revitalized. Satellite data that provides soil analysis can make that process easier.

Tsuboi noted that a big reason for the abandonment is that the farmers are getting older and are unable to maintain the land. One benefit of the Sagri platform is that machines can receive the data analysis and automatically perform tasks such as applying fertilizer.

Beyond Japan

Agtech is an area in which Japan has a great opportunity to be a world leader, and Sagri is putting its technology to work in India, where there are also many small farms. But getting the financing needed to keep operations going can be difficult. Sagri believes it has a solution.

“Many Indian farmers need loans, but they don’t have the chance to get them,” Tsuboi said. Because there are so many farmers, it is difficult for banks to spread enough money around. To have a better chance of funding, farmers want to show banks that they are a good investment, he explained. Banks cannot get that sort of information using present methods, but the satellite data analysis provided by Sagri can allow them to check the farmland’s condition and potential yields.

Tsuboi sees Africa as the company’s next market, noting potential in countries such as Kenya and Rwanda. Areas of Southeast Asia are also within Sagri’s sights.

Funding

There are not many agtech startups in Japan, but it seems that there should be. With lots of small farms, lots of creative people working on agtech at universities, and venture capitalists (VCs) with money to invest, why don’t we see more?

Tsuboi feels one reason is that VCs and the government both see farmland as low-growth opportunities. And attracting money from abroad, such as from Silicon Valley VCs, is not easy because they are focused on large-scale industrial farming. The farms on which Sagri is focused in Japan and India are too small to attract their interest.

But Sagri has had some success inside Japan, and announced in June that they have secured ¥155 million ($1.4 million) in funding from a group led by Real Tech Holdings Co., Ltd., who was joined by Minato Capital Co., Ltd., Senshu Ikeda Capital Co., Ltd., and Hiroshima Venture Capital Co., Ltd. Also participating is Bonds Investment Group Co., Ltd., whose Hyogo Kobe Startup Fund, established in March, is making its first investment.

Sagri is a great example of a Japanese startup that can assist people at home and also have a much bigger impact—and earn a much bigger profit—abroad. Globally, the company can help millions of small family farms thrive, and they can bring great returns for investors in the process.

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Listen to this episode of Disrupting Japan.

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Beyond the Pandemic

Digital health can guide the way for Japan’s post-virus evolution

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As the ACCJ is dedicated to ensuring a vibrant environment for global business in Japan, advocacy for improved health policy and initiatives is an important part of the chamber’s mission. One reason that foreign companies choose to invest in Japan is the nation’s high-quality manufacturing and services sectors, as well as its technological prowess and innovative workforce. Maintaining the health of the population—beyond the immediate challenges of Covid-19—is, therefore, critical to the future prosperity of the country and the viability of its business environment.

Recognizing this, the ACCJ has worked with the Institute for New Era Strategy (INES) to bring together key leaders in business, government, and academia to discuss the future shape of social security in Japan. The results can be found in the Healthcare Committee white paper Post Covid-19 Recommendations to Realize a Social Security System for All Generations.

Stronger Foundation

Our evolution as a data-based society has allowed us to grasp the impact of Covid-19 in real time, and digital tools have enabled the active cooperation of civil society as the government works to mitigate the threat and limit its damage. While this is an encouraging sign that bodes well for the future of Japanese society, the state of Japan’s infrastructure has been inadequate compared with other countries.

The ACCJ and INES provide ideas on how to build a stronger infrastructure through post-Covid-19 recommendations on how to realize a social security system for all generations, and to promote continued innovation and application of technology that can help Japan provide for the needs of its people in a way that is effective and fiscally sustainable.

The white paper discusses utilizing data technology, shifting financial resources to healthcare and retirement, and raising the health and financial literacy of society.

In terms of digital health and utilizing data technology, areas of focus include:

• Information usage rights
• Data collection
• Database integration
• Public–private collaboration
• Telehealth and virtual care

In the case of the last item, the Covid-19 pandemic has thrust this need to the forefront. As most people have been forced to stay home for extended periods, quarantine, or limit visits to clinics and hospitals, healthcare services at a distance has been the only way for many patients and doctors to interact. Particularly those in high-risk categories due to preexisting conditions, and those living in rural areas, have relied on telehealth services to minimize the risk of infection during the pandemic.

Stay the Course

One concern is that, once the coronavirus vaccine rollout is complete and a majority of the population has been inoculated, some digital initiatives that have been embraced might fall by the wayside as Japan fully returns to normal routines.

One recommendation from the joint ACCJ–INES team states: “It is essential to couple the support for telehealth with support for digital prescriptions, and to enable pharmacies to offer home delivery of important medications, all while expanding the overall role of digital technologies in delivering care. These measures will help support the aging population long after Covid-19, and enable new approaches to triaging, screening, and following up, customizing the patient experience, and improving the ability of doctors to monitor and communicate with their patients.”

Doing this will require a change in mindset and policy. While many forms of digital data exist in Japan, the individual’s consent is often not obtained at the time of collection, making it impossible to utilize the information. Even if the data is in the government’s possession, it is still difficult for it to be leveraged due to privacy considerations.

But with Japan’s fiscal strains exacerbated by the coronavirus, now is the time for the government to tackle these challenges. Strong political will and leadership are required to face reality, make the right choices, and share with the public a vision for a better future. And today’s digital tools and the power of data are making this possible and opening a door to a healthier, sustainable tomorrow.

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Invest in Your Business—and in Yourself

Finding the many paths to personal and financial success in Japan

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As we continue building entire issues of The ACCJ Journal around singular themes, this time we take a look at investment—specifically, investing in Japan. From individual entrepreneurs to large organizations, there are many opportunities to be had. There are also many needs to be addressed as the world continues to battle Covid-19 and look beyond the pandemic.

While we were putting together this issue, corporate Japan was in the midst of the 2021 annual general meeting season, and the American Chamber of Commerce in Japan (ACCJ) Alternative Investment Committee hosted its third annual Shareholder Forum on June 16. Last year, the focus was on facing new challenges amid the pandemic. This year, with an eye beyond the crisis, the speakers talked about active engagement and stewardship, sharing how corporate governance and board diversity are changing as the Financial Services Agency’s reforms—launched in 2015—continue to reshape the landscape. Our coverage of the forum begins on page 10.

Expat Expertise

I had the pleasure of penning two tales of interest to individuals for this issue. Both involve real estate investments but one casts a wider net. A perk of my role as editor-in-chief of The ACCJ Journal is the chance to learn about a wide range of topics from experts. On July 1, I attended a presentation by Tokyo Family Stays Chief Executive Officer Tracey Northcott about minpaku (short-term rentals)—something many people instantly associate with Airbnb. The turmoil surrounding the market in Japan is well known, but, with rules now in place, there are great opportunities for investment. Northcott delivered a wonderful bit of insight into the business, and I recap it all starting on page 24.

For the second piece, I talked to experts from three companies about possible paths for expat investors in Japan, as well as some of the pitfalls which they must navigate. You’ll find their advice beginning on page 40.

Global Investment

One of the Japanese government’s goals is to position the country as a destination for companies looking to relocate their Asia–Pacific headquarters. But there are some obstacles to achieving this.

The ACCJ Financial Services Forum and Investment Management Committee have both recently released papers that recommend changes that could make Japan more attractive. Starting on page 34, we talk to the authors and committee leaders to learn more about these ideas for making Japan a top financial center.

Additional thoughts in this issue come from renowned economist Jesper Koll, who has again written an insightful column for us about the keys to successful investment in Japan. He notes that keeping those bits of headline-grabbing advice in perspective and staying focused on the fundamentals is a must. Find out what else he recommends on page 32.

Invest in Yourself

Lastly, I think it is important to remember that the word “investment” does not always have to be tied to money. It’s also important to invest in ourselves—through learning, taking on new experiences, and challenging our notions. To that end, it was a real pleasure to chronicle the leadership journey of ACCJ Chair and GE Japan President Eriko Asai. Her phenomenal and inspiring story that spans five countries and multiple industries provides a wonderful roadmap for those looking to build a career and reach the highest levels of success. She presented the journey as part of the ACCJ-Kansai CEO Series, and clearly outlined many actionable points that can make anyone a better leader. The story starts on page 16.

As we head into the heat of summer, watch the long-delayed Tokyo 2020 Olympic and Paralympic Games take place, and continue to be encouraged by Japan’s vaccination campaign, I hope you will find a springboard in this issue from which to launch into a prosperous post-pandemic future.

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Going Long on the ACCJ

Investing yourself in the chamber is a great investment in Japan

In keeping with this issue’s theme, I’d like to highlight an alternative form of investing in Japan that is uniquely available to members of the American Chamber of Commerce in Japan (ACCJ): taking on a leadership role at the chamber.

As Japan’s most active and influential international business community, the ACCJ plays a vital role in improving the country’s business environment. As an ACCJ leader, you can put your experience to work to create lasting benefits that extend far beyond the scope of your present role.

With more than 60 active committees and a broad, best-in-class advocacy program, the ACCJ’s true strength is the expertise and engagement of its members. Serving as a leader in an organization with such bench strength and influence is an investment that can pay meaningful dividends.

For younger executives, it is a way to develop leadership skills and networks to help build your career. For mid-career executives, it can be a great stepping-stone toward future board engagements, career advancement, and professional fulfillment. For senior executives, it’s a chance to give back to the communities in which you’ve flourished, leverage your skills in a more diverse environment, and help mentor the next generation of leaders.

Continuity

This year, the ACCJ board and I have launched a new focus on the resilience and sustainability of the chamber. We appreciate our active leadership and want to strengthen it by encouraging development opportunities in which others—including new members—get involved as leaders. We’ve asked committee chairs and vice-chairs to develop succession plans and to create openings for more members to take on leadership roles.

We believe that having a pipeline of leaders and encouraging rotation will lead to a more dynamic and vibrant chamber. The ACCJ has long been a leader on the diversity front, and we’re challenging ourselves to energize our organization with even greater diversity at all levels. Both these initiatives create tremendous opportunities for interested members to invest their time and expertise in the future of business in Japan.

Payoff

Having a leadership role in the chamber can provide a different experience compared with one in the private sector, as well as opportunities to hone your skills or develop new ones. The ACCJ is much less hierarchical, and more consensus-driven, than many private-sector organizations. As a volunteer body, the chamber can provide a refreshing change of environment as the use of persuasion more than authority is key when navigating the diverse opinions and priorities of the membership.

For many, the ACCJ represents a great opportunity to fine-tune the type of management skills required to meet the needs of today’s workforce. For others, it offers a “mental gymnasium” in which to focus on something outside the usual routine. And for all, it’s a great way to expand your network, get involved in meaningful change, and broaden your professional experience.

Get Started

How do you get involved? A great first step is to speak to members who are in leadership roles today. Ask them about their experience and seek their input on areas where your skills might be put to best use.

For committee roles, speak to the ACCJ programs team or the current leaders of the committees in which you are interested. For Board positions, the Nominations Committee launched their self-nomination campaign in July and is seeking members who would like to put forward their name. We highly encourage self-nominations and welcome anyone who would like to contribute their time and energy.

I have been involved with the ACCJ in various capacities for the past six years, was a member once before—when previously living in Japan—while my parents were both governors in the 1980s. I can tell you that it has been a very rewarding and productive relationship for me, and I know that my parents were proud to be part of the positive changes the chamber has helped to foster in Japan. I want more members to have that experience, and I invite you to take on a leadership role. It’s an investment with a guaranteed high rate of return.

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Digital Transformation of Committees

Removing barriers and ensuring continuity through centralized tech

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When the American Chamber of Commerce in Japan (ACCJ) kicked off the transformation of its website platform early last year, the process sparked a conversation among members of the Chubu chapter about what digital tools our committee leaders need to succeed in bringing value to members and addressing pain points.

Following ACCJ President Jenifer Rogers’s directive to improve succession planning, the Chubu chapter reviewed the impediments that committees were facing. The takeaway was that the committee chair usually has all the documents, templates, and contact lists on their computer, and no one else has access.

As Chubu Programs Committee Chair Ray Proper explained, “I have years’ worth of information about my committee activities on my own shared drive—for my current and past committees—that I think would be much more useful were it accessible to others as part of a formal arrangement.”

Sudden Shift

Often in the past, without warning a committee member may have had to move out of Japan for work. This made it difficult for the remaining members to continue with the committee’s activities. Similarly, if the chair had a sudden medical event or accident, the committee would tread water until they could get back on track. This meant that the bus factor—the minimum number of people who can be hit by a bus before a project comes to a stop—effectively has been one.

Lastly, for committee leaders, an ongoing issue has been new member retention. Sometimes, a person joins a committee, attends a meeting, then never attends another. The feedback we have received from such members to date is that it’s hard to get up to speed, because they don’t know what has been discussed in previous meetings, are unsure how they can contribute, and don’t know what tasks need to be carried out.

Centralizing

To address these issues, the Chubu chapter began piloting the use of cloud storage for the Chubu Walkathon. This was then rolled out to the other committees.

Chubu Community Service Committee Chair Erin Sakakibara shared how the move made a difference this year: “Thanks to cloud storage, we were able to organize all our content and collaborate. It was particularly valuable in providing a base and continuity to build on in subsequent years of the Walkathon,” she said.

“But to be honest,” she added, “though technology is the tool, it also takes human management. You need someone who is organizing files and providing guidance for the team to get the full benefit of the technology. We couldn’t have pulled off the Walkathon without the cloud capability or our captain, who kept us organized and honest in our tasks.”

Having a cloud drive reduced the amount of management required on the part of the chair, as individual members could update and share documents on which they were working. This also eliminated the question of whether a document was the latest version—a crucial timesaver for an event with 220 files, scattered among more than 45 folders, being worked on by 20 people over the course of six months.

Onboarding

Getting new committee members up to speed becomes easier when you can point them to a cloud drive and they can review all the materials and meeting minutes. This helps them quickly get an idea of the committee’s activities, as well as how the group is organized and managed.

The Chubu chapter has also created LINE groups for each committee, allowing speedier communication while also making things more accessible to new members, increasing engagement by adding more touch points.

For successor planning, cloud storage moves the breadth of knowledge from the chair into a repository that all can reference. This can remove the barrier to entry for members and allow current chairs to step down with minimum disruption.

The Chubu chapter will continue to look into other technologies to address issues as well as assist leaders and members, so that the chamber can provide more value to everyone involved.

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Finding Success through Diversity

Outside directors can play a key role in your business and personal lives

It’s annual general meeting (AGM) season in Japan. I will participate in a few for the boards on which I serve as an independent director and anticipate that this year will be quite exciting, because the calls for greater independence of corporate boards are more insistent than ever. Indeed, some activist investors are setting the table stakes at 30-percent independent outside directors—in line with proposed changes to Japan’s Corporate Governance Code regarding Prime Market companies—before they will even consider voting in favor of a company-sponsored resolution.

Independent outside directors help to broaden the perspective of the board and hedge against the risk of insiders simply following the company position out of self-interest, loyalty, or groupthink. Studies have shown that companies with boards that include independent members tend to outperform those with boards comprising only insiders. As we seek reform in important areas—such as environmental, social, and corporate governance, as well as diversity and inclusion—it is believed that boards with greater independence will push for more rapid change.

The American Chamber of Commerce in Japan (ACCJ) has been advocating for Japan to improve corporate governance, so we are pleased to see, in the proposed changes to the Corporate Governance Code, a greater focus on sustainability, a recommended increase in the number of independent directors, and a call for companies to present a policy and targets for diversity in senior management.

Many Voices

At the ACCJ, we’re fortunate to have a diverse board that could be viewed as being made up entirely of independent directors. While all ACCJ board members are members of the chamber, our positions are voluntary and not paid, and—except in rare cases—we have no other business relationships with the chamber. As such, we could fall within the meaning of outside—or independent—directors.

As an organization, the ACCJ benefits from this tremendous diversity of backgrounds, experiences, and expertise, and the quality and range of the ACCJ’s white papers, statements, and events are a direct result of the diversity and depth of our membership. Having been involved in many ACCJ committees, and in the development of our papers and positions, I can tell you that divergent voices are the engine that drives our ability to effectively advocate on behalf of all members.

These experiences and imperatives got me thinking about the role that diversity, inclusion, and independent voices can play in our own lives and careers. When we look at our personal networks of peers, colleagues, mentors, family, and friends, how often do we see a mirror of our own experience and how often are we benefiting from a truly outside perspective?

Broaden Your Network

In the corporate world, consultants and coaches are paid to deliver their independent viewpoints and advice. But beyond these formal arrangements, there’s much we can do as individuals to broaden our perspectives. It’s comforting to be in the company of like-minded individuals, but staying inside your established circle can sometimes lead to an echo-chamber effect—and that’s not fertile ground for the type of innovation and constructive change we need to feed our energy as business leaders.

This month we’ve launched a revamped ACCJ Membership Directory and we’re piloting Wai Gaya—a new platform designed to facilitate informal conversations among members. Both initiatives offer opportunities for discovery and connection to broaden your network within the chamber.

I hope you’ll take this opportunity to get in the spirit of AGM season by not only expanding your ACCJ network, but by actively seeking out those with different views. Instead of simply connecting with people across your professional or industry sector, make a point of reaching out to people whose resumes and experiences look nothing like your own. Bring a few outside directors into your life. If the model holds true, you might just realize the same kind of performance benefits in your own career that we hope to achieve by pushing for more independence in corporate Japan.

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