Journal.Accj.Or.Jp | ¥800

The American Chamber of Commerce in Japan journal.accj.or.jp | ¥800

PRESIDENT EXECUTIVE DIRECTOR Welcoming New Members Bucket List Jay Ponazecki | Page 7 Samuel Kidder | Page 54 Journal September 2014 Vol. 51, Issue 9

History of Giving ACCJ Charity Ball: unbridled fun and chance to help local causes Page 12

BUSINESS INDEX Real Estate & Architecture — Page 32 毎月一日発行第五十一巻 9 号ジャーナル二〇一四年九月一日発行

Inside Vol. 51, Issue 9

7—President | Increased Presence 18— Press | Member News 27—Diversity | Houses Welcoming New Members • New Trans-Pacific Cable System Building Your Dream Home Jay Ponazecki • Tech Firm Gets Startup Support John Ghanotakis, Amir Khan, • Steakhouse Earns Its Chops and Timothy Trahan 9—Editor | Giving Back • Makers Team Up for Battery Plant Change is Brewing • ANA First to Fly Stretch Plane 28—Real Estate | Office Leasing Brandi Goode Vying for Space 19—Press | US–Japan News Tokyo’s vacancy rates plummet 12—Cover Story | CSR • Robots Mimic Origami while rents soar History of Giving • Comparing Education Cultures Barbara Hancock and • Program Aims to Fight Space Junk 32—Business Index | Kevin Naylor • Onsen Fit for a President Real Estate & Architecture • Surge Seen in Inbound 14—Embassy | Health & Energy Japan Travel 33—Relocation | Interview Full Charge for Bilateral Commerce Bouncing Back Andrew Wylegala 21—Drink | Brewers Tokyo still an important player The Business of Beer in the Asia–Pacific region 17—ACCJ Event | Kansai US brewers find a sweet spot in Japan Brandi Goode Learning from a Master Storyteller Martin Foster Rose Tanasugarn 37—Architecture | Sports 24—Cool Japan | Beginnings Politics in a Helmet Cultures Intertwined Olympic project receiving Roland Kelts unjust criticism Riccardo Tossani

SEPTEMBER 2014 • ACCJ JOURNAL | 3

September 2014 41

28 19

38 38—Music | Crossing Borders 50—HR | Communication All-American Rock Star and Tarento Can You Read the Air? Brandi Goode Andrew Silberman

41—Travel | Walking 52—Advocacy | Roundup Step Back in Time The Third Pillar Tour operator’s treks retrace history • Dietary Supplements Vicki L. Beyer Subcommittee • Energy Committee 45—Diversity | Boards • Toiletries, Cosmetics & Asking the Tough Questions Fragrances Committee Interview with Sakie Fukushima Brandi Goode 53—ACCJ Corporate Sustaining Member Companies 46—Economy | Advocacy Reforms Point to Lasting Change 54—Executive Director | John Amari Home Stretch Bucket List 49—ACCJ Events | Samuel Kidder Past and Planned

SEPTEMBER 2014 • ACCJ JOURNAL | 5 DLA PIPER IS PLEASED TO ANNOUNCE OUR SECOND ANNUAL GLOBAL IP SYMPOSIUM

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DLA Piper is a global law firm operating through various separate and distinct legal entities. Further details of these entities can be found at www.dlapiper.com | Tokyo switchboard +813 4550 2800 Copyright © 2014 DLA Piper. All rights reserved. | AUG14 | 2814201 President | Increased Presence

WELCOMING NEW MEMBERS

Jay Ponazecki [email protected]

lease join me in welcoming nearly 250 new members who environment for FDI into Japan (http://www.bsfuji.tv/primenews/ joined the Chamber during the two-month Entrance Fee special/movie_accj_pc_e0.html). Earlier this year, I discussed Waiver Campaign that took place immediately after the similar issues on behalf of the Chamber in video content by Women in Business Summit. This year we received more Reuters and Dennis Wholey’s “This Is America & the World.” than double the number of new applications we received This year the ACCJ has received more mentions in traditional Pduring the three-month campaign after the 2013 Summit. media than in the past, due in part to the wide acclaim of the Earlier this year, 21.3 percent of ACCJ members were women, Women in Business Summit and the hard work of, among others, and, as of August 1, 24.1 percent of ACCJ members were women. the Growth Strategy Task Force and the Healthcare Committee. As we were still processing all the new applications when this month’s ACCJ Journal went to print, we expect that percentage to US-Japan Healthcare Dialogue and Advocacy Best Practices increase to at least 25 percent. We are well on our way to having The U.S. Department of Commerce and the Japanese Ministry women comprise at least 30 percent of ACCJ members by 2020 of Health, Labour and Welfare (MHLW) plan to continue their (if not before), in support of Prime Minister Shinzo Abe’s goal of bilateral discussions on healthcare issues. These talks go back having women in 30 percent of management positions by 2020. more than 30 years, and most recently under the framework Many thanks to everyone who helped make this campaign a success. of the Economic Harmonization Initiative. After a period of inactivity, Commerce is looking forward to these important Increased Media Coverage Across More Varied Platforms discussions this month in Tokyo, in preparation for a visit by the I want to share some exciting developments regarding the ACCJ’s Secretary of Commerce in October. media presence. The Chamber has been ramping up its social media The ACCJ’s activities related to this development are fine presence through increased posts with more varied content on examples of what ACCJ committees can do in terms of advocacy. Facebook, Twitter and LinkedIn. With the increase in platforms that In preparation for these talks, Commerce asked the ACCJ enable video content, we also are continuing to explore how best to Healthcare Committee, chaired by Bill Bishop, to prepare an convey our messages to members, potential members, the public and industry submission of issues we would like Commerce to raise key stakeholders in the government, industry and academia. with the MHLW. The core issues that members want to raise In addition to the new video blog I recently launched (accj.or.jp/ are primarily positions currently being advocated in ACCJ en/news-a-media/accj-video-blog), we continue to update our viewpoints (see page 52). This underscores the importance YouTube channel (www.youtube.com/user/AmChamJapan/videos) of having up-to-date viewpoints reflecting issues of concern as we develop new content. Please subscribe to get alerts when new to committee members, as well as information sharing and content is available. networking. Not all Chamber committees focus on advocacy. In addition, the Chamber has been featured in video by some By reaching out to its members, the committee also identified prominent news outlets. Nick Benes, Chair of our Growth Strategy additional recommendations for Commerce to discuss with the Task Force, was featured in early July on NHK World’s Asia MHLW, including allowing new drug submissions in English Business Forecast. (http://www3.nhk.or.jp/nhkworld/english/tv/ and increasing the transparency of biennial pricing research into asiabiz/archives201407030600.html). I also appeared on BS Fuji actual market prices, which is used to guide price revisions but is Prime News in July to discuss some of the challenges Japan faces in not shared with industry. attracting FDI, with Japanese Diet Member Daishiro Yamagiwa. It If you have any questions regarding the Chamber’s advocacy was a lively and thoughtful discussion, and a great opportunity to initiatives, how you can get more involved in these efforts, or broadly disseminate some of the ACCJ’s core messages developed by how to prepare a viewpoint, please speak with Sam Kidder or our dedicated committee leaders on how to create a more inviting Ethan Schwalbe. •

SEPTEMBER 2014 • ACCJ JOURNAL | 7

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Formula1_v2.indd 1 8/25/14 3:56 PM Editor | Giving Back

there were some 65,000 general As of 2013, Tokyo dwellers can certainly CHANGE IS and specific nonprofit corporations attest to the craft beer revolution in Japan, a staggering figure for there were that is sweeping the city. Every time sorting out where your donations some I turn around there seems to be a BREWING should go. The Charity Ball new establishment offeringji-biru , Committee does the hard part for 65,000 which only became legal here in the you by researching the many fine general and early 1990s, following deregulation. organizations in need of support; Readers can sample some lesser- all you have to do is register and specific known local brews at the Great turn up. And bidding on the nonprofit Japan Beer Festival, reportedly the auction items wouldn’t hurt either. largest craft beer festival in Asia. corporations Launched in 1998, the international Brandi Goode Crafty creations in Japan. event will take place this year on [email protected] Despite a few recent deceptively September 13–15. breezy evenings, the humidity in Tokyo threatens to linger a bit Cool quotient ike many foreign residents longer. On particularly oppressive This month, I’m excited to announce of Japan, I feel abundant nights, a frosty beverage is called the inaugural contribution from gratitude for the life I’m for. Three American brewers who Roland Kelts. While our last high- able to lead here. Daily are shaping the future of beer profile writer, Robert Whiting, L frustrations crop up, as they consumption in Japan are featured recounted anecdotes from Tokyo’s would just about anywhere, but the in another article (see page 21). past, Kelts’s Cool Japan column overall quality of life in Japan is so Having lived in Denver, I’ve been (see page 24) will explore how Japan high that the good nearly always delighted with the proliferation is redefining its modern identity. outweighs the bad. of one Colorado native brew in His entertaining insights will Often, the opportunities for giving particular since its Japan market undoubtedly demonstrate how this back are not self-evident. You can entry last year. Sponsored by Blue national strategy could translate into contribute time or money, perhaps Moon, the Omohara Beer Forest new business opportunities. our most valuable resources—but atop the Tokyu Plaza building in Finally, in response to persistent where to focus your efforts? Omotesando is a classy alternative feedback about the font size used in Our cover story (see page 12) is to the nomihodai offerings at other the magazine, we’ve revised the text about one way the ACCJ supports urban beer gardens. Visit the leafy so that it is noticeably larger. So, put the community in Japan, namely “Natural Terrace” until September 28 away your bifocals, and I hope you the annual Charity Ball. As of 2013, for a welcome urban retreat. enjoy the September issue. • PRESIDENT

Jay Ponazecki Morrison & Foerster, Ito & Mitomi

CHAIRMAN

Christopher J. LaFleur McLarty Associates uniquebydesign.jp TREASURER 2013 Company of the Year

Jack E. Bird Zeirishi Hojin PricewaterhouseCoopers

Publisher Simon Farrell VICE PRESIDENTS President Robert Heldt Jeffrey S. Bernier Delta Air Lines, Inc. Studio Manager Paul Leonard Vicki L. Beyer Morgan Stanley MUFG Securities Co., Ltd. Steve R. Burson (Chubu) H&R Consultants K.K. Editor-in-Chief Brandi Goode Andrew J. Conrad Aflac Japan Graphic Designers Kiran S. Sethi (Kansai) Jupiter International Corporation Michael Pfeffer Michel D. Weenick Hilton Worldwide Ximena Criales Jim R. Weisser PBXL Inc. Client Services Director Sam Bird

ACCJ GOVERNORS Marketing Manager Megumi Okazaki Sales Manager Leon van Houwelingen Tim Brett Coca-Cola (Japan) Co., Ltd. Thomas M. Clark GE International Inc. Account Manager Jody Pang Herman J. Ehrlich (Kansai) Hilton Osaka; Osaka Hilton Co., Ltd. Account Executives Hiroshi Torobu Rebecca K. Green ERM Japan Ltd. Rick Ahern C. Lawrence Greenwood, Jr. MetLife Genevieve Seah Jonathan Kushner Kreab Gavin Anderson K.K. George L. Maffeo Boeing Japan K.K. Video Producer Gamma Siregar Junichi Maruyama Citigroup Japan Holdings Corp. Media Coordinator Kana Shimoyoshi Eric W. Sedlak Jones Day Andrew W. Silberman Advanced Management Training Group To advertise: [email protected] Yoshitaka Sugihara Intel K.K. William J. Swinton Temple University, Japan Campus Custom Media Publishers of the ACCJ Hiroyoshi Watanabe Amazon Japan K.K. Journal for the American Christopher E. Zarodkiewicz (Chubu) Cezars International K.K. Chamber of Commerce in Japan. Specialists in PRESIDENTS EMERITI bilingual brand strategy/visual communications, corporate Debbie Howard (2004–2005) bespoke solutions. Producers Charles D. Lake II (2006–2007) of Business in Japan TV. Allan D. Smith (2008) Daiwa Azabudai Bldg. 6F Thomas W. Whitson (2009–2010) 2-3-3 Azabudai, Minato-ku, Michael J. Alfant (2011–2012) Tokyo 106-0041

SPECIAL ADVISOR Tel: 03-4540-7730

Kathy Matsui Warning/Disclaimer Custom Media and the ACCJ will not accept liability for ACCJ EXECUTIVE STAFF any damages caused by the contents of the ACCJ Journal, Samuel H. Kidder Executive Director including, but not limited to, Laura Younger Deputy Executive Director any emissions, errors, facts or false statements.

Opinions or advice expressed in the ACCJ Journal are not necessarily those of the ACCJ or Custom Media.

Information as of August 7

The American Chamber of Commerce in Japan Masonic 39 MT Bldg. 10F, 2-4-5 Azabudai Minato-ku, Tokyo, Japan 106-0041 | Tel: 03-3433-5381 Fax: 03-3433-8454 www.accj.or.jp / https://japan.careerengine.org/accj/

The ACCJ is an independent membership organization not affiliated with any government or other chamber The ACCJ Journal is printed on paper certified by the US Forest of commerce. The ACCJ is a member of the Asia Pacific Council of American Chambers and values its Stewardship Council with vegetable oil ink certified by the Japan relationships with Japanese, American and other nations’ business organizations. Printing Ink Makers Association.

10 | ACCJ JOURNAL • SEPTEMBER 2014 Food Safety and Waste Management and Consumer Affairs Bureau Recycling Department Pharmaceutical and Committee on Organizations Food Safety Bureau Involved with Commerce, Industry European Affairs Bureau Corporate and and Medium and Small Enterprises IR Bureau External Organizations Committee Ministry of Agriculture, Forestry and Fisheries Policy Research Ministry of Health, Policy Research Committee of Council Ministry of Foreign Affairs Labour and Welfare Committee Standing Directors Ministry of Budget Finance Ministry of Internal Affairs LDP Japan Tourism Bureau Ministry of the and Communications DPJ Headquarters Agency Headquarters Environment Komeito Headquarters Customs and Ministry of Land, Infrastructure, Tariffs Bureau Transport and Tourism Cabinet Of ce Women Diet Policy Committee Committee Agriculture and Forestry Division Civil Aviation Ministry of Defense Youth Ministry of Economy, Bureau Committee Agency for Natural Trade and Industry Resources and Energy Cabinet Legislation Integrated Planning Bureau Of ce Ministry of Education, Culture, Sports, Science and Technology Diet Affairs Diet Affairs Economic and Committee Committee Industrial Policy Bureau Sports and Youth Bureau

European Affairs Bureau Youth Ministry of Justice Division Global ICT Strategy Bureau Health, Labor and Civil Affairs Bureau Economic Affairs Bureau Road Transport Welfare Division Bureau

Committee on Information and Organizations Involved Communications Bureau with National Security

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Jakob Tomohiro Philip Atsushi Natsumi Daniela Dr. Llewelyn Yutaka Edberg Gogo Howard Tsuchida Ishino Dimitrova Hughes Iwahori Managing Director Director / Senior Public Policy Public Policy Research Public Policy Director Co-founder Executive Manager Manager Director Manager Policy, trade and Former METI and Intelligence MLITT, METI and London School University of Tokyo. University of Tokyo/ Former Policy politics. Japan’s MHLW official. and Strategy. MIC. Transport of Economics. Healthcare and MIT, Asia-Pacific. Secretary in House top government Inward Investment, Overseas clients and Tourism, Finance and Pharmaceuticals. Energy and of Representatives. relations adviser. International and Business Information Economic Policy. Environment, Policy-making, law Trade. Development. Communications Trade, Domestic and environment. and Technology. Politics.

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140818 GR Japan Tube Map Advertisement JK006.indd 1 19/08/2014 16:01:17 Cover Story | CSR History of Giving

ACCJ Charity Ball: unbridled fun and chance to help local causes

By Barbara Hancock and Kevin Naylor

hortly after its founding in 1948, the American at large—the people and organizations that make Chamber of Commerce in Japan (ACCJ) started our lives possible here. hosting the annual Crystal Ball, now known Since the event redesign in 2002, the ACCJ as the Charity Ball. After the inaugural event, Charity Ball has evolved into a multi-faceted, S the Crystal Ball grew to become multi-cultural celebration with a strong the major social event of the year on the focus on “giving back.” We have raised expatriate community calendar. Everyone over ¥130 million for numerous charities. looked forward to it. Funds have gone toward supporting our The ball was so popular—often attracting local community and, more recently, the over 1,000 guests—that only the largest Tohoku region as well. ballrooms in Tokyo could accommodate The Charity Ball Committee works everyone. Throughout the years, the Charity closely with the Community Service Ball has been graced by some of the most Advisory Council to help the ACCJ carry respected U.S. figures in Japan, including out its humanitarian efforts with funds every U.S. ambassador, as well as senior raised at the event. Every year, the council officers from all branches of the U.S. military. identifies the primary charities to which In 2001, the ACCJ, like all American a majority of the donations are made—a organizations, took time out from truly difficult task, given the large number celebrating to refocus on new priorities in of worthy causes under consideration. John Nylin, U.S. Department of State, bids for an the changed world after 9/11. In 2002, the item at the 2013 ball. Beneficiary charities are chosen with chamber redirected the social energy of our two main principles in mind. First, the community by transforming the event into the ACCJ donation should be used in Japan, and second, the Charity Ball. We still look forward to the stylish year-end recipient organization should be small enough so gathering, as a chance to not only celebrate with friends that the donation made by the ACCJ constitutes a and guests, but also to support the Japanese community significant contribution.

Entertainment at the 1962 Inaugural Dinner Entertainment at the 2013 Charity Ball

12 | ACCJ JOURNAL • SEPTEMBER 2014 Cover Story | CSR

WANTED! Your Participation Please save the date for these two great events

ACCJ Charity Ball “The Wild, Wild West” FRIDAY, DECEMBER 5 T H AT THE ANA INTERCONTINENTAL HOTEL AND

The ACCJ Charity Ball

Wine Tas te-off st In the past, Charity Ball funds have been donated WEDNESDAY, OCTOBER 1 AT BULLDOG TEX-MEX-BBQ to a range of organizations, such as those that support: • Homeless persons (Mike Makino Fund) • Children and families affected by serious illnesses (Tyler Foundation, A Dream a Day) • Victims of domestic violence (No no Hana no Ie) • The disaster-stricken Tohoku region (MIT Japan 3.11 Initiative, Fukushima City Public School System, JKSK, O.G.A. for Aid) • Children with disabilities (YMCA Challenged Children Project) Proceeds have also gone to breast cancer research REWARD (Run for the Cure), counseling services (TELL), food A FABULOUS TIME AT BOTH EVENTS distribution (Second Harvest Japan), and the fight against human trafficking (Polaris Project). The ACCJ Charity Ball promises attendees not only the experience of an exceptional gala evening and entertainment, but also the dual rewards of networking with the Tokyo business community and contributing to causes that fulfill our host Barbara Hancock Kevin Naylor is a community’s social needs. is vice president of sales director at en Media Sense K.K., world Japan K.K. This year’s theme is “The Wild, Wild West,” and the and chair of the and is vice chair of committee is now hard at work organizing what we ACCJ Charity Ball the ACCJ Charity intend to be a night to remember. Be sure to join us on Committee. Ball Committee. December 5, at the ANA Intercontinental Hotel. •

Wild, Wild West Wine Taste-Off DETAILS Date & time: Whether you’re a fan of thick-bodied reds, Wine enthusiasts and those who simply October 1, 7:00–10:00pm soft buttery whites, or something in between, enjoy a fun, relaxed get-together with you are certain to enjoy the ACCJ Charity Ball friends and colleagues are invited to this Cost: ¥5,000 Wine Taste-Off. Not only will you have the evening of delectable tipples, delicious opportunity to sample a variety of wines from Tex-Mex hors d’oeuvres, and a light-hearted Venue: your favorite local purveyors, but your vote wine competition. Bulldog Tex-Mex BBQ restaurant will also help select the wine to be served at 2F Akasaka Gessekai Bldg. this year’s gala. 3-10-4 Akasaka, Minato-ku, Tokyo

All net proceeds will benefit the organizations chosen as primary charities for the ACCJ 2014 Charity Ball. Sign up online through the ACCJ’s events page for this not-to-be-missed event!

SEPTEMBER 2014 • ACCJ JOURNAL | 13 Embassy | Health & Energy

FULL CHARGE FOR BILATERAL COMMERCE

By Andrew Wylegala

n last month’s article, we the daunting approval process. renewable power generation. While previewed the health sector Blackouts have been averted, but Japan has yet to fully implement portion of U.S. Secretary of challenges loom, from supply electricity and gas market Commerce Penny Pritzker’s pinches and rate hikes. Although liberalization or hit its targets for I October trade mission to Tokyo. the “hangover” from the 2011 triple renewable energy, the new plan This month we turn to energy, disaster lingers, new paths forward recommits the country to power and the other half of the mission. Just are emerging. gas sector reforms. as deregulation and promotion As Silicon Valley legend and Secretary Pritzker’s October trade policies are injecting life into Japan’s C3 Energy CEO Thomas Siebel mission could not be better timed. life sciences sector, electric power commented at a recent embassy The market for “smart power,” from restructuring and feed-in tariffs for event, Japan has always been a production to retailing, will be a renewables spell vast potential for “model pupil in the school of lucrative one for US companies US–Japan energy commerce. energy.” It survived the oil crises in such as C3 Energy, which offers The stakes are high for Japan. the 1970s and developed energy- end-to-end solutions. Over the summer—the first without saving technologies in the ’80s. Liberalization of the retail power nuclear power—the average usage The government of Japan’s New market (one-third of total demand) of available electricity hovered at Strategic Energy Plan, approved is scheduled for April 2016. around 90 percent. While utilities in April, calls for simultaneously From 2018 to 2020, we will see the have applied to restart 20 nuclear decreasing Japan’s dependence separation of power generation, reactors, only two have cleared on nuclear power and increasing transmission, and distribution—

Ribbon-cutting ceremony at the 2014 World Smart Energy Week, held in February at Tokyo Big Sight.

14 | ACCJ JOURNAL • SEPTEMBER 2014 Embassy | Health & Energy

Renewables account for only 6 percent of energy in Tokyo today, but the goal is 20 percent by 2020.

hence the busting of regional World Smart Energy Week in Tokyo, during the 2020 Olympic and monopolies. To ensure competition, we will add a wind power pavilion Paralympic Games. Japan’s recently a public body, the Organization to one for hydrogen fuel cells. issued Strategic Road Map for for Cross-regional Coordination The 2014 show, which Ambassador Hydrogen and Fuel Cells seeks to of Transmission Operators, Caroline Kennedy opened, make hydrogen part of a CO2-free will be established this month. attracted worldwide attention, energy supply system by 2040, Liberalization should make utilities and this year’s US contingent will be while Nikkei BP Clean Tech receptive to efficiency-enhancing even larger. We look forward to the Laboratory forecasts a $370 billion technologies, while so-called U.S.–Japan Renewable Energy Policy global market by 2030. new power companies will seek Business Roundtable, the second In good news for both the “leapfrog” technologies to break Fukushima Recovery Forum, United States and Japan, shale into the market. and the New Orleans Association gas-based LNG may be imported Japan’s feed-in tariffs for Conference (held in Tokyo) for into Japan as soon as 2017, and renewables, although lowered twice, Japanese utilities, all in spring 2015. Japanese entities will co-finance feature an attractive ¥36/kWh rate the first three projects (in the for offshore wind power. Renewables Hydrogen market heating up US cities of Cameron, Freeport, account for only 6 percent of energy Toyota Motor Corp. has announced Andrew Wylegala and Cove Point), totaling $10 in Tokyo today, but the goal is 20 the 2015 commercial debut of its is the minister billion. Another $10 billion will percent by 2020. fuel cell vehicle in Japan. Over counselor for be invested in 90 LNG tankers commercial affairs We are also championing US 100 refueling stations are planned, at the Embassy of by 2020. In short, the business renewable energy solutions beyond and government and industry are the United States of health is energetic … and the the October mission. For February’s collaborating to showcase hydrogen Tokyo. energy business is healthy. •

Strike while the jambalaya is hot!

With major electricity market US technology and solutions to reform on the horizon, Commercial enhance their competitiveness Services Japan (CS-J) organized against each other and new the 29th New Orleans Association market entrants. It’s a seller’s Conference—CS-J’s largest energy market, and CS-J successfully matchmaking event—in late May, recruited 60 representatives of bringing Japanese electricity 24 US firms, connecting them producers together with US product to 39 Japanese procurement and service providers. managers and directors from With an eye to pending electricity domestic utilities and independent market liberalization, Japan’s power producers. The 30th annual large, regional power companies New Orleans Association meeting are eager to find new, innovative is slated for May 21, 2015. CS-J representatives with executives from power firms in Japan.

SEPTEMBER 2014 • ACCJ JOURNAL | 15

ACCJ Event | Kansai

LEARNING FROM A MASTER STORYTELLER Largest regional chamber event this year draws over 200 guests

By Rose Tanasugarn

Speaker Garr Reynolds (right) receives a certificate of appreciation. Dr. Carsten Brunn (second from right) with members of the ACCJ Kansai Women in Business Committee

n July 17, the ACCJ Kansai Held at the Ritz-Carlton, Osaka, Grand Jedi Master Yoda, of the chapter hosted the largest it drew over 200 attendees. Star Wars saga, Reynolds reminded regional chamber event Reynolds’s interactive us that in giving presentations, this year. Garr Reynolds, presentation kept the audience “You must unlearn what you have Obest-selling author and rapt and engaged, by showing learned.” Presenters should also five-time presenter at Japan’s TEDx amusing multimedia and images keep things simple, unexpected, (Technology, Entertainment and that were familiar to all attendees. concrete, and credible, he said, Design) talks, gave a riveting He successfully demonstrated that as well as impart emotion while presentation to a packed audience. text-filled PowerPoint slides are a sharing a story. The event, which was hosted by the thing of the past. Dr. Carsten Brunn, president and Business Programs Committee and To be memorable and effective, CEO of Bayer Yakuhin, gave some sponsored by Bayer Yakuhin, Ltd., Reynolds emphasized, a speaker closing remarks. was titled “Why Storytelling Matters must find new ways to connect with “Garr’s presentation was thought- in 21st-Century Presentations.” the audience. Quoting the character provoking, informative, and highly entertaining. He reminded us of the power of storytelling as a way to

A native of Los inspire people in a way that appeals Angeles, Rose to both their rational as well as their Tanasugarn emotional side. serves on ACCJ “I spoke to many participants after Kansai’s Business the event, and everyone took away Programs, Women in Business and something practical to implement in Community Service their daily work—including myself,” committees. Dr. Brunn said. •

SEPTEMBER 2014 • ACCJ JOURNAL | 17 Press | Member News

New Trans-Pacific Cable System Tech Firm Gets

A consortium of six global countries across the Pacific Ocean. Startup Support technology companies, including The system will link two areas of Google Inc., has been formed to Japan—Chikura, in Chiba Prefecture, The first Japanese company has been accepted into create and operate a high-speed and Shima, in Mie Prefecture—with the Microsoft Ventures Accelerator program in Internet cable between the United major hubs on the US West Coast. London (press release, July 25). States and Japan (Silicon Valley The six-company consortium Fove, Inc. has announced its development of Business Journal, August 11). also comprises China Mobile the world’s first eye-tracking head-mount display The $300 million initiative is called International, China Telecom Global, for consumers. The new product has potential “Faster,” and aims to connect the Global Transit, KDDI, and SingTel. applications in gaming and other fields, and the Japanese firm is looking into a potential collaboration with Xbox. Microsoft Ventures partners with promising startups around the world, to “help smart companies take flight.” There are currently seven accelerators in Bangalore, Beijing, Berlin, London, Paris, Tel Aviv, and Seattle.

The Tokyo American Club’s modern wine cellars Makers Team Up for Battery Plant Steakhouse Earns Its Chops Tesla Motors Inc. has announced a tie-up with Panasonic The Tokyo American Club’s in the list, including Hotel New Corp. to construct a major battery manufacturing plant Decanter restaurant has received Otani’s La Tour d’Argent and in the United States (abcnews.com, July 31). an award from the New York-based Shangri-La Hotel, Tokyo’s Piacere. The new $5 billion facility is expected to create 6,500 Wine Spectator magazine for the The award category featured just jobs and be built in Arizona, California, Nevada, New second year running (press release, 650 restaurants worldwide. Mexico, or Texas. The plant will produce cells, modules, August 4). The honors recognize restaurants and battery packs for the US automaker’s electric vehicles, The steakhouse won the Best of that offer outstanding wine and for the stationary energy storage market. Award of Excellence, the second- selections, several vertical offerings Osaka-based Panasonic will manufacture and supply highest of the wine authority’s of top wines, excellent breadth the lithium-ion battery cells and invest in equipment. annual accolades. Only seven across several wine regions, as well Tesla is banking on reducing its battery costs to support restaurants from Japan figured as distinctive, rare wines. the development of a new, lower-cost model.

ANA First to Fly Stretch Plane

All Nippon Airways Co., Ltd. in the 787, about 35 percent of became the world’s first airline to which comprises Japanese materials. operate the Boeing 787-9 stretch The first flight, a round-trip from Dreamliner in early August Tokyo International (Haneda) (airlinereporter.com, August 7). Airport to Mt. Fuji and Kyoto, had Commercial Service Japan onboard 70 American and Japanese coordinated an event to schoolchildren. commemorate Boeing’s delivery The 787 stretch model is able to of the new model to ANA on accommodate 60 more passengers August 4. U.S. Ambassador to Japan than the standard Dreamliner, and Caroline Kennedy highlighted the will ply domestic routes linking Tokyo, strong bilateral business embodied Fukuoka, Osaka, and Matsuyama. Seventy children were aboard the maiden flight over Mt. Fuji.

18 | ACCJ JOURNAL • SEPTEMBER 2014 Press | US–Japan News

Robots Mimic Origami Comparing A research team from Harvard and MIT has introduced a robot that can transform itself from its two- Education dimensional form into a 3-D object (Forbes, August 9). The developers found their inspiration in origami, Cultures as well as in such natural-world processes as that by The author of a new pedagogic which a flower opens in the sun. Applications have been book compared teaching methods suggested for outer space, or other environments where a in US and Japan classrooms for flat device is optimal for storage. HARVARD’S WYSS INSTITUTE six years in her research (NPR, The robots take about four minutes to autonomously August 9). fold themselves into functional shapes for specified tasks. The process begins when hinges placed at key spots The robots take four minutes begin to heat up due to an external trigger, causing the to assemble themselves. materials to harden and constrict.

Program Aims to Fight Space Junk

Tokyo is looking to tie up with Washington operations in orbit. Washington is seeking on a space program, in what some pundits partners to extend its satellite links in the have called “the fourth battlefield” RT( News, Asia–Pacific, and began discussions with August 4). Japan and Australia in 2012. The US–Japan partnership would be Many people have commented on how aimed at protecting communication and the space program is an extension of the US surveillance satellites from the massive military pivot toward this region. Tokyo’s quantity of space junk that can threaten space initiative is set for launch in 2019. In her book, Elizabeth Green describes how math lessons in the United States present up to Onsen Fit for a President 20 or 30 practice problems in one lesson, to instill learning through The resort town of Obama Onsen in repetition. In Japan, there is only Nagasaki Prefecture has enjoyed a surge in a single question per class period, tourism since the US president’s election which allows students to examine in 2008 (NPR, August 4). deeper mathematical concepts, Soshi Nakamura, an employee of the she writes. town’s tourism office, said that residents She also extols the way teachers were excited when Barack Obama was in Japan work together to evaluate elected president six years ago, and they and dissect each other’s lessons, still feel an affinity for the leader today. thus building mentors among Obama-themed kitsch pervades the their peers. Green feels American place, with signs and printed towels on sale teachers are too isolated to learn

on many street corners. Obama Onsen is OF OBAMA ONSEN SIGHTSEEING ASSOCIATION from others’ experiences and do home to a famous geopark. A life-sized Obama statue greets visitors to the town. not share best practices.

The number of US travelers to Japan hit an all- clocked at 446,000 for the first half of 2014, Surge Seen time high this June (Meetings Focus, July 2014). surpassing all previous records for a six- Statistics from the Japan National Tourism month period. in Inbound Organization (JNTO) showed that 87,900 Reasons suggested for the increase include people from the United States visited Japan more direct flights from the United States Japan Travel during the month. April and May of this to Japan, favorable dollar/yen exchange year also break previous visitor records. rates, and heightened, targeted promotional In addition, the total of US visitors was activities by the JNTO.

SEPTEMBER 2014 • ACCJ JOURNAL | 19 Welcome to Japan Three ways of Living Eight lives in Tokyo

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BANGALORE BANGKOK BEIJING CHENGDU GUANGZHOU HANGZHOU HONG KONG JAKARTA MANILA MUMBAI PUNE SEOUL SHANGHAI TOKYO Drink | Brewers

THE BUSINESS OF BEER US commercial and independent brewers find a sweet spot in Japan

By Martin Foster

Blue Moon is served on tap at the Omohara Beer Forest in Tokyo’s Omotesando district.

merican brewers are Austria, and the Czech Republic, Young Tapping the market helping create a new beer lovers drank over 100 liters Bryan Baird takes a different approach generation of beer drinkers per capita in the same period. Japanese to beer making. in Japan, adding a spark Molson Coors’ market research are moving “As brewers, we brew beer that we A of excitement for younger has revealed that young Japanese away from want to drink,” Baird said. “Our job is people who have been moving away are moving away from pilsner-type, to lead, not follow, the customer.” from mainstream brews. bitter beers, and have developed a pilsner-type, Ry Levell, publisher of Japan Beer Keith Villa, founder of Blue Moon taste for something less carbonated bitter beers, Times, a bilingual beer magazine, Brewing Co., brought an admiration and sweeter. had this to say about the American for Belgian beers—along with a People here have long had a taste and have beermaker: “Bryan does not think PhD in beer-making from Brussels for citrus-based flavors, such as developed about what beers will sell best; rather, University—to his vats when he kabosu (juicy green citrus fruit) and he brews what he likes and says, ‘Ye created the ale in Boulder, Colorado, yuzu. Hence, it is no surprise that a taste for shall like this.’” in 1995. Now owned by Molson the citrus tang of Blue Moon, which something Baird—who honed his trade in Coors and produced in Shenandoah, is spiced with coriander and often California—and his wife Sayuri began Virginia, Blue Moon has only served with a slice of orange, finds less to brew and sell Baird Beer in the been available Japan-wide since ready appeal with the Japanese, carbonated Fishmarket Taproom in Numazu, November 2013. Abe said. and sweeter. Shizuoka Prefecture, in January 2001. “We want to introduce Blue “We feel it is the perfect match,” he But it wasn’t all plain sailing at first. Moon to Japan as a novel taste,” added. “The citrus flavor goes well “It was excruciatingly tough-going,” said Kazuki Abe, marketing with fish, and the coriander is a little he remembered. It took investments director for the brand at Molson spicy, so it helps refresh the taste buds from family and friends to kick-start Coors Japan Co., Ltd. when eating meat or other types of the business. Beer consumption is falling in fatty foods.” Baird Beer now employs about this nation. According to figures Under its slogan of “World 35 people, caters to over 500 from Kirin Holdings Company, only Beer Entertainment in Japan,” independent accounts, and has 43.5 liters were consumed per capita the company sees Blue Moon as a taprooms in Numazu, in Tokyo’s in 2012, down 0.6 percent from the flagship product helping to extend Nakameguro and Harajuku districts, previous year. In Estonia, Germany, the variety of beers on offer here. as well as in Bashamichi, Yokohama.

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Baird’s is a success story in the craft beer arena, but he warns that the Japanese market is not for everyone. “No brewer can succeed here without a love of Japan and a Japanese cultural toolbox,” he said. “If you lack one or the other, don’t even think about it.” Just this summer, Baird boldly moved the brewery to bigger facilities in the Shuzenji area of Izu City. The new brewery opened on June 1 and contains three brew houses. Two new beers are also in the testing pipeline for eager beer drinkers: Shuzenji Heritage Helles and Wabi-Sabi Japan Pale Ale. Bryan Baird began brewing Baird Beer in 2001.

Betting it all on beer sell this much of your product on offer at the Brimmer Box: a pale Scott Brimmer sat on a prefabricated this year’—without even tasting ale, a porter, a golden ale, and a patio above the Brimmer Beer Box our product!” seasonal specialty ale. in Tokyo’s Aoyama district as he Brimmer and his wife, Yoshiko, Tomoko Shiguma runs a boutique said, “Beer has been one of the most put their entire life savings of about nearby, and dropped in while we important decisions in my life.” ¥25 million into the business, and were there to sample the golden ale. Brimmer started his own craft beer took on part-time jobs, including “Very easy to drink. It has a fruity brewery in Kawasaki in 2011, after delivering NTT phone books, to aftertaste,” she said approvingly. having worked for almost 10 years make ends meet during the six- Brimmer Beer tripled capacity in at Sierra Nevada Brewing Company month period while waiting for its first two-and-a-half years, and in California, and Gotemba Kogen the paperwork. Brimmer is negotiating for factory Beer in Shizuoka. In order to get “Eventually, we got approval. But, space that will allow capacity to Martin Foster is the official go-ahead for his project, a writer who has I swear to God, if it had come two triple again. Brimmer had to prove his brewery lived in Tokyo months later, we probably would not “We are in the right place at the could sell 60,000 liters of beer. since 1977. After a have had a brewery.” right time as far as the brewing “Before we had a product, career in financial Brimmer favors the malt industry goes,” he said. And that before we had a company, we had journalism, Martin characteristics of British ales, and is good news for beer drinkers in has recently to convince bars, restaurants, and ventured into most of the ales he produces are Japan, who will benefit from all distributors to give us written environmental based on Crisp Marris Otter, a these original beers brewed with permission, saying ‘We expect to issues. classic British malt. Four beers are skill and conviction. •

Scott Brimmer worked for California’s Sierra Nevada Brewing Company for almost 10 years before launching Brimmer Beer Box. Cool Japan | Beginnings

CULTURES INTERTWINED American influence on Japan’s soft-power push

By Roland Kelts

PHOTO BY GAGE SKIDMORE Anime cosplayers at the annual Phoenix Comicon

n 2002, American journalist coerce others into agreeable behavior But while most Americans have Douglas McGray published via military or economic bullying. grown used to, and even cynical an article in Foreign Policy Soft power might persuade others about, the global appeal of fast magazine called “Japan’s Gross to do your bidding through the appeal food, Levis, and other cultural icons I National Cool.” After spending of cultural products. In the case of of the homeland, most Japanese a few months traveling around the the United States, that would mean are stunned, even skeptical, country, McGray concluded that Hollywood movies; jazz, pop, and rock when they are told their culture Japan was transitioning from being music; fast food; and blue jeans. has an international audience. a manufacturing exporter to a A conversation with Japanese The thought of being in the spotlight cultural exporter. baby boomers does much to bolster can be jolting. What he called “the whiff of Nye’s claim. Novelist Haruki When McGray’s article was American cool” that dominated Murakami, for example, is quick translated into Japanese, it sent most of the 20th century was being to highlight the attractiveness of shockwaves through the intelligentsia supplanted globally by “the whiff of Soft power American culture in postwar Japan, and government. Bureaucrats were Japanese cool,” in the form of cultural might especially in the 1950s and ’60s. scrambling to find ways to capitalize products such as manga, anime, persuade “It was everywhere,” Murakami on what the American journalist fashion, and cuisine. told me, “and everything was so shiny had uncovered—a new identity McGray cited the phrase coined by others to do and bright. When I first heard the and purpose for a nation mired in Harvard professor Joseph S. Nye (who your bidding [US] Modern Jazz Quartet [band], economic stagnation and perceived was, incidentally, President Barack it changed my life. And when the irrelevance. McGray was invited back Obama’s first choice for ambassador through first McDonald’s opened in Tokyo, to Japan to deliver a speech on his to Japan in 2008): soft power. Nye the appeal my friend and I held hands as we findings to government officials. The contrasted the phrase with hard of cultural approached. We were so excited and American had unveiled a cool new power—the more conventional nervous to find out what this thing Japan, and Japanese officialdom liked means by which nation states seek to products. called a ‘hamburger’ really was.” what they saw.

24 | ACCJ JOURNAL • SEPTEMBER 2014 Cool Japan | Beginnings

The birth of Japanamerica the greatest living animation artist A couple of years after McGray’s and director—Hayao Miyazaki. article was published, I was invited As we were vetting the final to lunch in Manhattan by an editor manuscript, my editor in New York at Palgrave Macmillan. The editor, sent an email to me in Tokyo: “We’ve Toby Wahl, had liked some of the discussed this at a meeting with the stories I’d written about Japan, and marketing team. The title we like is wanted to commission me to write Japanamerica.” a book on Japanese popular culture, specifically anime, and how it was What is “Cool Japan”? making inroads into US life. As I was conducting research and I politely declined. While I had racing to finish the book in time for a Japanese mother, had attended publication in 2006, Mika Takagi, kindergarten in Japan, and had then a recent graduate of Stanford discovered manga, anime, and University’s School of Business Japanese tokusatsu (special effects who had studied Silicon Valley, monster TV dramas) as a kid, I was appointed to head a Japanese was no otaku (geek with obsessive government committee called interests). “Cool Japan.” But Wahl and his colleagues Kelts’s book covers more than anime. The phrase was lifted from were patient and persistent, finally British Prime Minister Tony Blair’s convincing me that what they “Cool Britannia” campaign of the late were seeking was a book for a in it. The seven-year occupation 1990s. While it drew and continues general audience—something that (1945–52) and postwar bilateral to draw plenty of detractors (who could help my American father alliance flooded Japan with calls themselves “cool” anyway?), understand why a bright yellow American cultural artifacts—icons it survives to this day, and is now Pikachu float appeared in a parade of soft power like Disney films and the name of a 20-year, $375 million celebrating the most American of the TV series Father Knows Best. government fund to promote holidays, Thanksgiving. The father of modern manga and Japanese culture worldwide. So I dove into the project, renting anime, Osamu Tezuka, lionized Japanese The road has been long, rocky, several anime DVDs, reading manga Walt Disney. He met the storied pop culture, potholed, and may lead nowhere. as well as books on anime and American at the 1964 World’s Fair The Cool Japan Fund was rubber- manga, and arranging interviews. in New York, and claimed to have it turned stamped last summer. It may be Among working titles for the book watched the movie Bambi 81 times. out, had renamed, but for now, it is the was Animation Nation: Japan’s And so the book I wrote was no brand of a mission to share and New Cultural Export. I talked longer about one animation nation, American spread Japan’s cultural soft power. to American fans, academics, but about two cultures densely DNA And as the 2020 Tokyo Olympic producers, and distributors. I even intertwined. Today, at Pixar’s studios embedded and Paralympic Games approach, chatted to a couple of tolerant in northern California, the most it is the only apt title for this freshly teenage girls at a manga display in a talented animators in America revere in it. minted column. • Barnes & Noble. Soon after I flew to Tokyo and began my research there. However, the nation that kept popping up in Roland Kelts is a half-Japanese American have appeared in The New Yorker, interviews and during my hours writer, editor, and lecturer who divides his Time, Psychology Today, Playboy, and studying at the University of Tokyo time between Tokyo and New York. He The Wall Street Journal. Kelts authors a is the author of the acclaimed bestseller monthly column for The Japan Times, library was … the United States. Japanamerica: How Japanese Pop Culture and is also a frequent contributor to Japanese pop culture, it turned Has Invaded the US and the forthcoming CNN and NPR. Find him online at: out, had American DNA embedded novel Access. His fiction and nonfiction http://japanamerica.blogspot.com

SEPTEMBER 2014 • ACCJ JOURNAL | 25

Diversity | Houses

BUILDING YOUR DREAM HOME Advice from homeowners on creating a place of your own in Japan

By John Ghanotakis, Amir Khan, and Timothy Trahan

s many Japan residents can attest, house hunting is not an easy or straightforward process in this country. AIt is especially difficult if Get help and use connections you are a young, foreign professional A good construction company or It should be noted, however, that with limited means, and are seeking real estate agent can be worth their for both Khan and Shuttleworth, a mortgage. Amir Khan, vice chair weight in gold. Sadly, however, very every step of the process was of the Young Professionals Group few have much experience assisting conducted in Japanese. Thus, people Subcommittee, and Andrew young foreigners, and even fewer are without fluency in Japanese will Shuttleworth, another young able to help with the most difficult need language support. professional, have experience in part of the process: obtaining a this area, and shared with us some mortgage. Many Japanese banks Saving money on building insight into the process. advertise foreigner-friendly loans, With any house construction project, but the underwriters often will not you will be presented with a host Research is key support an application if the foreign of options, and often encouraged The initial selection of land or applicant is not a permanent resident. to go with the priciest alternative. property can be daunting. Things Even with a Japanese spouse, getting The key is to identify the priorities to consider include commuting a mortgage is still a big challenge. that suit your lifestyle. Do you really and transportation links, price, Shuttleworth chose Adcast, a need extravagance in every room potential resale value, local real estate broker and consulting of the house? When entertaining, amenities, building materials and firm, to help with a mortgage and will guests really notice the design, as well as ways to ensure the land purchase. The company’s workmanship of the walk-in closet? the investment is “future proof.” established connections helped Where possible, go for practical, All this adds up to a time-consuming ensure both processes were quickly inexpensive options in most of the decision-making process. completed. He could then seek a house, and only splash out in those Khan and Shuttleworth spent recommendation for someone to areas that matter most. about a year doing extensive actually build the house. In addition, remember that you computer-based research and For Khan, the entire process can always upgrade later. Or, if you physical scouting. Each visited was handled by Sanyo Homes (a are good with DIY (do-it-yourself) over 100 properties and plots of subsidiary of Sanyo Corp). Because modifications, take on some tasks land, assessing their pros and cons. the firm was the landowner and is yourself, such as garden landscaping Through this exhaustive process, they also a builder, he was able to bypass or outdoor decking. Last, make sure said, you really begin to distinguish much of the stress of having to you thoroughly check the building among things you must have, would John Ghanotakis find a landowner and, separately, work for defects and/or omissions like to have and, most important, (chair), Amir Khan, a suitable builder. Sanyo’s size and before you dismiss the builders. cannot tolerate. and Timothy connections also helped ease the Further, ensure your guarantee is You’ll probably find that many Trahan (vice chairs) mortgage application, which was valid over many years, and that the criteria you initially deem essential are members of automatically approved with zero terms include regular check-ups. the ACCJ Young become less important, and that Professionals fuss. In addition, the architects With the correct planning and many things you hadn’t considered Group ensured a flawless build from the support, you should have the house prove to be vital aspects. Subcommittee. rough sketches they received. of your dreams in no time. •

SEPTEMBER 2014 • ACCJ JOURNAL | 27 Real Estate | Office Leasing

VYING FOR SPACE Tokyo’s vacancy rates plummet while rents soar

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he market for office space come on the market in the 2013–14 in Tokyo is booming, in period, creating a noticeable squeeze part due to optimism for top-tier properties. In 2013, surrounding Prime Minister for the first time in six years, the T Shinzo Abe’s pledges to new aggregate demand for offices boost the national economy. in Tokyo’s large-scale buildings A steady increase in demand surpassed the new aggregate supply. has been seen over the past five Competition can be fierce for office years, following the so-called space these days, and it is likely to Lehman shock, with only a minor worsen in the next year or so. dip following the triple disaster in March 2011. Both domestic and A voice for tenants international companies are driving This is where tenant representation this demand, and they are looking comes in, to help match companies for offices of all sizes. with suitable buildings. Greg “The predominant reasons Turnbull works for a large property companies are relocating are consultancy, but he represents positive ones. They are expanding, leaseholders, not landlords. looking for better locations with “We sit clearly on the occupier’s/ more office space, and hiring user’s side, as opposed to the more employees,” said Toshihiro landlord’s side,” said Turnbull, who Mochizuki, of Mitsui Fudosan, Co., is a senior tenant representative at Ltd. Indeed, many companies are Colliers International in Japan. not only seeking additional space In practice, this means that for current headcount, but are also Turnbull and his colleagues, rather planning ahead for future hires. than talk up the market, spend a lot Before, Mochizuki added, of their time, as he put it, “refuting companies were relocating They must also be no more than Nomura’s PMO market rumors and landlord because they had to downsize, so 15 years old. The vacancy rates in buildings are ambition.” all at nearly the market has done a complete these properties are at their lowest “In 2014, the Tokyo office market 100% capacity. 180-degree turn. in three years, and this is causing has tightened considerably in Grade A properties are upward pressure on rents. According comparison to recent years, as firms particularly in demand. These to research by Savills, achievable have relocated, decreasing overall buildings must meet certain rents for Grade A office space rose market vacancy. Demand remains criteria, such as being located in 2.8 percent in the second quarter of price-sensitive, so top rents have one of Tokyo’s five central wards— 2014, which signifies a robust rate remained relatively static,” he said. Chiyoda, Chuo, Minato, Shinjuku, of increase in this market. Mitsui Fudosan’s Mochizuki or Shibuya—and have floor space Furthermore, very few new agreed. “There is a steadily growing of 10,000 tsubo (33,058m2) or more. large-scale developments have demand for top-class buildings.

28 | ACCJ JOURNAL • SEPTEMBER 2014 Real Estate | Office Leasing

Average Grade A office rents by ward Average Grade A office vacancy rates by ward

Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 40 14

35 12

30 10

25 tsubo 8 % 20 6 JPY ('000) per tsubo JPY

15 percent 4 10 JPY (‘000) per

2 5

0 0 Chiyoda Chiyoda Chuo Chuo Minato Minato Shinjuku Shinjuku ShibuyaShibuya Chiyoda Chiyoda Chuo Chuo Minato Minato Shinjuku Shinjuku ShibuyaShibuya

Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 *GRAPHS COURTESY OF SAVILLS JAPAN 40

35 In these buildings, the rent is high, Bigger not always better 30 but they are still fully occupied.” Not all companies require offices

As of the second quarter25 of 2014, in a city’s most prestigious Grade Many companies are not only the average rent in Tokyo’s five A buildings or prime commercial seeking additional space for current central wards was ¥16,32520 per tsubo. areas. For many organizations, mid- However, with an expanding size offices with supreme attention headcount, but are also planning JPY ('000) per tsubo JPY economy comes more buildings,15 to detail are more attractive. This ahead for future hires. so there is hope yet for companies is particularly true for the growing bemoaning current Tokyo10 rates number of small, independent and availability. businesses in Japan, a sector of the 5 “The amount of new office stock economy Prime Minister Abe is harmful ultraviolet and infrared being added to the market will trying to enhance. rays, another prime selling point. 0 increase year on year, peaking in Chiyoda Nomura Chuo Real Estate Development Minato Shinjuku Shibuya Many prospective tenants also place 2017,” Turnbull noted. “Navigating sees a niche market emerging a high value on eco-friendly features the currently tight conditions, while for what it deems to be PMOs such as LED lighting and rooftop planning to leverage upcoming (premium mid-size offices): greenery. “Energy efficiency is one supply, requires careful advice and companies with 10 to 40 staff. of the most appealing elements,” consideration.” Since the end of last The firm coined the term in 2008 Kojima explained. year, some landlords have begun in response to what it interpreted Just like Tokyo’s Grade A buildings, attempting to increase rents for as a new type of demand outside however, Nomura’s 16 PMOs have existing premises at lease renewal or the Class A structures. Security, nearly 100% occupancy. The company expiry. However, with the exception economy, and lifestyle elements are plans to open a 17th facility this of those leases with very low rent, priority concerns for such clients. month (September 2014), in any level of increase should be Japan is known worldwide for the Shibadaimon, Tokyo. This is another vigorously challenged, he said. safety of its buildings. Nevertheless, area of town that has been getting a In addition, Turnbull said some “security remains very important to lot of attention of late, as companies practices may come as a surprise clients, as it increases the credibility take notice of larger spaces available for newcomers to this market, as [of a property],” said Emii Kojima, in recently built structures in the traditional Japanese leases have who works on the leasing team at Shibaura area near Tokyo Bay. many tenant-friendly features. Nomura. In addition to advanced Among Tokyo’s five central This includes allowing tenants to security features, the company’s districts, Shinjuku posted the terminate space with six months’ PMO facilities are equipped with strongest rental growth in the notice, and also allowing tenants to double-pane windows, which allow second quarter of 2014, spurred re-negotiate their rents at any time. in natural light, but screen out on by a fall in vacancy rates. •

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CR Ad ACUMEN Magazine 1.indd 1 6/28/2013 5:33:21 PM Publicity | Heritage

PRIDE OF PLACE Law firm in historicMarunouchi building chooses tradition over skyscrapers

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The Meiji Seimei Kan building was constructed in 1934.

ther international law “I’m pretty “When Caroline Kennedy came second-largest law firm in the world firms may have the most past, I’d never seen anything like measured by revenue. modern spaces in the tallest sure that those crowds,” Miller said. “They DLA Piper represents many of skyscrapers in Tokyo, but no other were 30 deep in places, cheering and the biggest corporations in the OLance Miller would not law firms in applauding as she went by in the world, working with foreign firms change his company’s premises for horse and buggy.” operating in Japan and Japanese all the steel, glass, and chrome in Japan are in It is just another perk of a corporations that have interests in the city. a building building that escaped the bombing other jurisdictions. Country managing partner for of the city during World War II— Much of the work involves Japan for the DLA Piper Tokyo that has thanks primarily to its proximity to intellectual property litigation, as Partnership, Miller purposely this much the palace. The structure was taken well as finance and project issues, chose to locate the law firm in the over by the Supreme Commander mergers and acquisitions, private Meiji Seimei Kan building in the history for the Allied Powers after Japan’s equity and venture capital, real Marunouchi district when the behind it.” surrender in 1945. estate transactions, and tax. company outgrew its previous “I just love the location here,” Miller said he never gets tired premises in 2006. Miller said. “We are right across of working in a building with such Designed by Shinichiro Okada from the palace, there is a vast history at every turn. The brass and completed in March 1934, the expanse of green right outside our pneumatic tubes that were originally eight-story building sits on the windows—which we can actually installed to transmit letters between corner of Hibiya Dori and Babasaki open—and the outside of the floors have been retained, along with Dori, where the streets cross the building is elegant and graceful. square-faced clocks that keep time outer moat of the Imperial Palace. “All the other law firms have as well today as they did in 1934. Miller and his 25-strong team get a moved into modern, high-rise The elevators are reassuringly old- show every time a new ambassador spaces, but that was not something fashioned and a safe manufactured to Tokyo parades past en route we wanted,” he said. “I’m pretty sure by Chubb & Sons in London is still to present their credentials to the that no other law firms in Japan are displayed prominently, set into Emperor. Officials usually eschew in a building that has this much the wall of DLA Piper’s seventh- the modern limousine for a more history behind it.” floor offices. traditional mode of transport. That exclusivity ties in neatly with The offices are also home to the genesis and philosophy of DLA dozens of gadgets and devices Lance Miller, country managing partner for Japan, Piper, which was formed in January invented by Thomas Edison and DLA Piper Tokyo Partnership 2005 by a merger between three law collected by Henry Koda, who firms: San Diego-based Gray Cary joined DLA Piper in 2010 and has Ware & Freidenrich LLP, Chicago- been collecting Edison paraphernalia headquartered Piper Rudnick LLP, for more than 35 years. and DLA LLP, which originated The informal display includes in Britain. miners’ helmets with Edison lamps, The merger was the first major gramophones, curling irons, coffee trans-Atlantic union of legal percolators, a television, a sewing practices, and the firm now employs machine, and waffle irons. Pride of more than 4,200 lawyers in over 30 place in this rare collection goes to countries throughout the Americas, a light bulb that was made in the the Asia–Pacific, Europe, and 1880s and has a filament made with the Middle East, making it the bamboo from Kyoto. • Business Index | September 2014

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32 | ACCJ JOURNAL • SEPTEMBER 2014 Relocation | Interview

BOUNCING BACK Tokyo continues to be an important player in the Asia–Pacific region

By Brandi Goode

hoenix-born Ken Madrid East Japan Earthquake, seeing Investment the negative movement of years past. has seen a lot since moving the disaster as a way to trim their We expect more activity in the to Hong Kong in 1991. operations. in real second half of this year, as that is The CEO of Crown When a company is considering estate is when most people transfer here. P Relocation’s Asia–Pacific an expat posting in Asia, tax all about We also see great potential in other division has guided the business rates can be a major factor. Many business areas, such as document through critical moments in overseas companies tax-equalize, how much storage and fine arts logistics. various countries’ histories: the meaning they withhold taxes from risk you are Asian financial crisis in 1997, an employee equivalent to the rate Do you anticipate a real estate the Indonesian riots of 1998, as in that person’s home country. So, in willing to boom in the run-up to the 2020 well as the Lehman shock and countries where there is a big gap in take and Olympic and Paralympic Games? Great East Japan Earthquake here, the host versus home country’s rates, What we saw with the Sydney among others. the companies will have to close how long Olympics was a positive attitude Madrid joined the company shortly that gap. Thus, posting executives you want to toward the economy, so real estate after a merger transformed Crown to Singapore or Hong Kong (where be in a place. prices rose at first and serviced into a global player in the relocation there is a flat 16.5% personal income apartments got gobbled up right market, from its humble beginnings tax rate) can be more economical away. However, this plateaued after in Yokohama in 1965. After over than sending staff to Japan. a while and then everything just two decades in the region, he has a stopped right before the Games. balanced, long-term perspective on What changes have you seen in People are uncertain then, no one’s international business. Japan’s relocation market? moving in or out. Take this year’s Japan has largely been stagnant for World Cup in Brazil, for example. ACCJ Journal: How does Japan the past 10 years, although we are In the six weeks before the event, compare to other leading cities in seeing things start to bounce back. our volume of business was less than this region? There was a surge when the banking 50 percent of that of the year before. Madrid: It’s still a significant sector opened up to foreigners. destination for expats, despite the Many of the firms coming in had big Any advice on buying versus “rise of China.” Although China plans for Japan, but packed up and renting in this market? certainly has the biggest piece of the left after a few years. This For someone who foolishly never economic pie, you don’t see as many was great for us as bought in the Hong Kong market, executives from multinational firms relocators, though! for me, investment in real estate is transferring there. China is much In 2013, we had all about how much risk you are more factory-oriented, whereas 3–4 percent growth willing to take and how long you Japan, Hong Kong, and Singapore in the number of want to be in a place. For foreigners are financial centers, so they have people we moved looking to invest here, you must be more in common. in. It seems small, willing to ride things out if another That is why, in the wake of but this was an disaster occurs. March 11, 2011, many expats improvement on Capital yields are also strong here were transferred to Hong Kong or compared to Hong Kong, because Singapore; you didn’t see Shanghai capital appreciation hasn’t soared as getting much of that personnel much, but I see that changing. Today’s movement. On the other hand, many growth is a reflection of strong stock companies ended up eliminating markets, a rising sense of hope, and a positions as a result of the Great belief that things are improving. •

SEPTEMBER 2014 • ACCJ JOURNAL | 33 Business Index | September 2014

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34 | ACCJ JOURNAL • SEPTEMBER 2014

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Architecture | Sports

POLITICS IN A HELMET Olympics project receiving unjust criticism

By Riccardo Tossani

ith emotions running Zaha Hadid’s Zaha Hadid’s stadium design Like Tange’s provocative high on the perceived mockup for the new for the Tokyo 2020 Olympic and predecessor, Hadid’s avant-garde National Stadium injustices surrounding Paralympic Games has been statement will benefit from corrupt the proposed Olympic compared to a bicycle helmet. practices embedded in the politico- W National Stadium Ironically, this resonates with construction-industrial complex, project, achieving any meaningful Kenzo Tange’s 1964 Olympic deaf to voices of dissent. Unlike some understanding will only occur if National Gymnasium in Yoyogi, questionable and socially disruptive we separate the two core issues at the form of which, according to the urban planning initiatives proposed, hand. The first is socially sustainable architect, is derived from a samurai this stadium’s architecture has a planning; the second is architecture. helmet. While at least symbolic of character befitting a 21st-century With regard to the former, and Japanese apparel, the relevance of city of 35 million inhabitants. according to an excellent article by a warrior’s helmet to the benign Admittedly, this comes at the expense Robert Whiting in the July 2014 nature of sports remains a mystery, of the demolition of a nondescript ACCJ Journal (“Dark Side of the particularly in post-war Japan. stadium and the displacement of Games”), the same morally and Detractors probably abounded in several groves of trees. In my view socially corrupt practices that led the run-up to this eccentric project. this is a small price to pay for an up to the 1964 Olympics projects It has proven, however, to be a extraordinary amenity and an are at risk of coming into play for timeless masterpiece of architecture enduring architectural masterpiece. the forthcoming 2020 event. But the that has inspired legions of young outraged, shrill voices of activists architects around the world with its Tour de force trying to make themselves heard— mix of bold, unconventional lines Olympic projects that require through mainstream and social and sublime grace. relocation of residents and the media—are confusing the two core Riccardo Tossani An aspirational building ahead spending of public funds at a issues at stake. is the principal of its time, courageously leaning time of crisis, and that lack the Architecture is a complex, architect and forward to the future, the design was engagement of, and accountability emotional, and subjective act of will urban designer at nevertheless approved, budgeted, to, the electorate, are irrelevant to the and vision. The bolder it is, the less Riccardo Tossani and built thanks to the corrupt selection of Hadid’s architectural tour Architecture, Inc. it will be immediately understood by (www.tossani.com), practices outlined by Whiting. de force. Such arguments should be the general public, which often leads established in While Pritzker Architecture Prize kept separate. to rejection and outright revolt. Tokyo in 1997. winner Hadid’s “bicycle helmet” Anti-Olympics protestors, social design might appear less iconically activists, and concerned dissenters Japanese, this baseless metaphor at need to tune their collective voice and least relates to sports. Like Tange’s focus their scattered logic on the very gymnasium, Hadid’s stadium design real social, political, and qualitative beautifully exemplifies Japanese environmental issues that are present society in its most enlightened state. elsewhere. Only then do they stand It will be an astonishing addition to a chance (though unlikely) of being the pantheon of monuments that heard. Loose, ill-formed critiques make Tokyo a world city, located of a project unfairly chosen as the among the commercial monuments lightning rod of minority discord will occupying the front row. get these protesters nowhere. • The 1964 Olympic National Gymnasium in Yoyogi

SEPTEMBER 2014 • ACCJ JOURNAL | 37 Music | Crossing Borders

ALL-AMERICAN ROCK STAR AND TARENTO Guitarist finds freedom to be eclectic in Japan

By Brandi Goode

hen he moved to Tokyo in the Friedman’s story is a rare one, as even he early 2000s, Marty Friedman admits: “There is no precedent for me.” While was just another longhaired most foreign musicians coming here might find American transplant. The fact work as hired hands in local acts or wind up as W that he had toured the world for struggling independent artists, Friedman has a decade as the lead guitarist of iconic metal built his own brand through a balance of TV, band Megadeth, sharing stages with the likes music, and even sponsorship opportunities. of Metallica, Pantera, and Judas Priest, meant A lifelong learner with immense ebullience, he nothing to Japanese fans or musicians. began studying Japanese as a hobby. Since then, he has earned a name for himself “Everybody on the [Megadeth] tour bus in the domestic entertainment industry, and would be playing video games, and I would is a firm fixture on NHK programs as well as be studying Japanese, just for fun.” Friedman other media channels—all in fluent Japanese. served as the group’s “tour guide” when they Friedman is launching his 12th solo album this played in Japan, and those repeat visits helped year, and though he concedes he rarely does cinch his determination to make a life here. He interviews with the English press in Japan, he finally decided to move to Tokyo after playing took the time to speak with the ACCJ Journal a decade with the foursome, but not for the ahead of his September Tokyo concerts. typical reasons.

All about J-pop “It was the music that drew me. I was listening to only Japanese music, so at some point I had to come here and be where it was all happening. Making domestic Japanese music is what I ultimately wanted to do,” Friedman said. It may come as a surprise to many that the seasoned musician is an avid fan of J-pop. But, after speaking with him at length, and watching him casually joke with high-profile stars and NHK producers, there seems no end to the surprises inherent in his personality. Friedman belonged to what many industry professionals and metal fans alike consider the eminent incarnation of Megadeth. He played with the thrash metal ensemble on seven of its 11 Grammy-nominated songs and albums in the 1990s, which, along with his solo work done in parallel, garnered him a solid following. One might think this fame would kick-start his career in Japan, but it actually worked against him in some ways. Plus, music here

38 | ACCJ JOURNAL • SEPTEMBER 2014 Music | Crossing Borders

Want to see Marty live? The ACCJ Journal is giving away three pairs of tickets to Friedman’s September 24 and 25 shows at Tokyo’s Harajuku Astro Hall. Write to [email protected] before September 12 for your chance to win.

http://t-onkyo.co.jp/?ticket=marty-friedman

Winners will be picked at random.

is completely segregated, he said. “You are Although Friedman, on a personal level, either domestic or international, so I was “takes TV work with a grain of salt,” his regular always put in that second box, yet it was the gigs on Japan’s ubiquitous and wacky variety fans of domestic music I wanted to reach. programs, and shows such as NHK World’s “Megadeth meant nothing to them. Asia Music Network, have been real enablers In fact, it was more of a black mark because for his brand. He believes his more than 600 of the name—it sounded scary,” he said, Japanese TV appearances to date have allowed roaring and pulling a face to emphasize him more leeway in his musical career, because the point. “So I had to start as the new guy, of the face value he gets on screen. which was very odd given my career before However, “it’s a plus and minus,” he said. then. It was about making one new fan “It gets you in some doors, but some music at a time.” industry professionals may harbor prejudice against me, because to some people, I am more More than metal well known for my TV work than my music. All this didn’t matter much to him, though, “Sometimes I feel they take me less seriously as he didn’t want to be known as simply as a musician when they see me on a variety “the metal guy.” show,” he added. “That’s the price you have to “Metal guitarist … you know, this is just pay, I guess.” one side of me and my music; there is so There seems to be a method to the much more I’m doing and interested in bicultural, bilingual musician’s madness, as doing,” he said. he has managed to sustain an impressively In due time Friedman earned the respect prolonged career and a significantly varied of Japanese musicians, but that wasn’t his fan base. fundamental aim. “Respect as a musician is “Staying relevant is not something that you fine, but that doesn’t get you into the home think about, especially when you have a long of Joe six-pack. My goal has always been to career. You just want to stay interesting to make my music available to more people,” yourself,” he said. he explained. A big part of that is a constant pursuit of Since moving here, he has worked with doing “bigger, cooler things,” Friedman insists, top names in the music business, from the such as his latest labor of love, Inferno. The trending Momoiro Clover Z, to veteran boy- album, which features collaborations with band SMAP and provocative AKB48. While artists such as Rodrigo and Gabriela, is his these artists have all impacted his work, he most ambitious solo offering yet. It enjoyed draws inspiration from a host of stimuli in his a simultaneous international release, and daily surroundings. Friedman is touring Europe, South America, “Influence is a weird thing. I collaborate and the United States to promote it. with so many people doing so many different Reflecting on how his life has changed since things, and watching the way everybody coming to Japan, he said, “I’m inventing it as I works, from my stylist to the guy holding go, and it’s gone extremely well for me, better the cue cards, to the engineers and directors, than I ever imagined. My life and work now has an impact—maybe more than the direct are far more challenging than the Megadeth influence of other musicians.” days—that was a walk in the park!” •

SEPTEMBER 2014 • ACCJ JOURNAL | 39

Travel | Walking

STEP BACK IN TIME Tour operator’s treks retrace history of Japan

Text and photos by Vicki L. Beyer

t’s fun to look around and try to Walk Japan offers off-the-beaten- from China, being adopted by means imagine what a place must have track guided tours that take travelers of integration with Shinto and been like in the past, and perhaps back in time. Because most of their other traditional practices based in even wish to go back in time. tours feature substantial spells of animism. One result was Shugendo, I Alas, time travel isn’t possible— sightseeing on foot, you can get up a form of esoteric Buddhism or is it? close and personal with much of centered on mountain isolation. The I recently learned that it is possible Japan’s history. Kunisaki Peninsula, in northeast to journey into Japan’s past—on foot. Some of the tours are real Kyushu, is host to several shrines Until not so very long ago, travel “treks,” for intrepid hikers who can and temples dating back to that time. on foot was the standard method of comfortably cover 10 to 20 miles a Walk Japan’s level 5 Kunisaki Trek getting around in Japan. There was day (classified as levels 4–6 by Walk (10 days/nine nights) uses an ancient some use of horses, but the wheel Japan). Other tours are much easier, pilgrimage trail to visit a number of was not used for transportation until involving less than three miles a these, including the oldest wooden the early Meiji period, just a century day on foot and liberal use of more structure in Kyushu. and a half ago. modern means of transportation Skilled guide and Walk Japan So, to experience ancient Japan, or (level 1). Pick your level of difficulty executive Mario Anton leads even Japan prior to the middle of the and hoist your pack! tourists on precipitous mountain 19th century, you have only to walk. trails and through verdant valleys, It helps to walk with someone who Start in the 8th century while providing information on the knows the history and can tell you It is possible to travel all the way religious history of Kunisaki, as well what to look for, however. Here’s where back to the 8th century. Buddhism as past and present agricultural the folks at Walk Japan come in. was then a relatively recent import practices. The tour features a bird’s

Tashibunosho, paddy fields under cultivation for over 1,000 years

SEPTEMBER 2014 • ACCJ JOURNAL | 41 Share your Story, enhance your brand

nglish novelist and travel writer “To lose a passport was the least Pablo Picasso and Ernest Hemingway Bruce Chatwin (1940–89) can of one’s worries: to lose a notebook figure among the creative icons who be credited with giving the was a catastrophe,” Chatwin mused. wouldn’t be caught in a café or crosswalk Moleskine brand its seemingly A small French bookbinder ceased without their little black books. Eobscure name in the late 20th century. production of the notebooks in the Today, Moleskine is a brand built The handy, pocket-sized notebooks, mid-1980s, and the present-day on creativity and mobility, and now called carnets moleskines in their Moleskine brand was born in Milan companies in Japan can become a part native France, were his accessory of in 1997, bringing back to life the of that legacy. choice when recording the details legacy of great artists and thinkers, of a scene while travelling, accounts who used the brand’s predecessor that would later be fodder for his notebooks to capture their words, prizewinning novels. images and ideas.

custom for custom

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MoleskinAd.indd 3 8/5/14 9:57 AM Share your Story, enhance your brand Travel | Walking nglish novelist and travel writer “To lose a passport was the least Pablo Picasso and Ernest Hemingway Bruce Chatwin (1940–89) can of one’s worries: to lose a notebook figure among the creative icons who be credited with giving the was a catastrophe,” Chatwin mused. wouldn’t be caught in a café or crosswalk Moleskine brand its seemingly A small French bookbinder ceased without their little black books. Eobscure name in the late 20th century. production of the notebooks in the Today, Moleskine is a brand built The handy, pocket-sized notebooks, mid-1980s, and the present-day on creativity and mobility, and now called carnets moleskines in their Moleskine brand was born in Milan companies in Japan can become a part eye view of rice paddies that have trusted advisor to Tokugawa Ieyasu. native France, were his accessory of in 1997, bringing back to life the of that legacy. been under cultivation for over He frequently traveled the length choice when recording the details legacy of great artists and thinkers, 1,000 years. These ancient paddies, of Japan to Nagasaki and Hirado in of a scene while travelling, accounts who used the brand’s predecessor with their varied shapes and sizes, Kyushu to assist Dutch and English that would later be fodder for his notebooks to capture their words, are in stark contrast to the more traders whose access to Japan was prizewinning novels. images and ideas. modern rectangular paddies visible limited to those two ports. Just in the next valley, the product of as Adams might have done, the post-Meiji land reforms. Anton tour stops along the way in Kyoto, also provides introductions to the Hiroshima, and Shimonoseki, other priests at a couple of the peninsula’s cities associated with those early oldest temples, scions of families days of the Tokugawa shogunate. that have cared for these temples The operator’s flagship tour for generations. Chatting with features the Nakasendo, a these young men and learning Tokugawa-period road through of their efforts to revitalize their mountainous terrain between Edo communities was a real treat. and Kyoto. This inland route was While most tours include several preferred by female travelers of nights in traditional Japanese the day, as it involved fewer river Oku-no-in, at as a city whose history was destroyed accommodations with sumptuous crossings than the coastal Tokaido. 1,300-year-old by the 1923 earthquake and World Futagoji temple, kaiseki-style meals, in Kunisaki the The 11-day/10-night level 3 tour War II fire bombings. But walk the in Kunisaki overall experience is enhanced by a takes travelers through time and Peninsula city with a knowledgeable guide, night in traditional Buddhist temple mountains to effectively traverse like Walk Japan’s Paul Tierney, and accommodation. Buddhist vegetarian the shogunate period. The tour learn how much of old Edo is still meals are served and you have the originates in Kyoto and makes an in evidence. You probably walk past opportunity for morning meditation. early stop at the site of the Battle bits of history every day without custom for custom of Sekigahara, where Tokugawa realizing their value. In two days, Entering Edo Ieyasu’s victory in 1600 made him Tierney guides visitors through 300 Custom Media has been chosen as the in 92 countries and 24,000 points For a peek into Japan at the shogun. Travelers then walk several years of Edo history, often bringing B2B partner of customised Moleskine of sale, Moleskine is an aspirational beginning of the Edo period (1603– stages of the Nakasendo’s original it to life with old photographs or notebooks, which can be ordered global brand. 1868), the 12-day/11-night level 1 cobblestones, stopping at various period woodblock prints he carries and designed in Japan. Instead of the Large-size (13cm x 21cm) customised Shogun Walk is a great place to start. post towns—way stations for with him. standard mix of edible omiyage this notebooks are available at nearly 40% off The tour focuses on sites associated travelers that ensured government Nihonbashi is a classic example. holiday season, why not give a gift that Japan retail prices, with a minimum with Will Adams, the 17th-century control over use of the road—until Between the old prints and Tierney’s is more than a commodity—an object order of 300. Have a notebook made for: inspiration for the Blackthorne they reach Tokugawa’s capital, Edo, adroit explanation, one can that finds its way into bags, desks, character in James Clavell’s novel, which became Tokyo in 1868. envision the raucous spectacle of hearts and minds? • Special events, such as Shogun. Adams was shipwrecked Walk Japan also offers a couple of 18th-century fishing boats, travelers, contact Megumi okazaki: Classic, sleek and innovative, product launches in Japan in 1600 and became a urban tours. Tokyo is often lamented and merchants. Tierney will also a customised notebook can enhance • Training and development tools bring to life the Boshin War that [email protected] your brand identity and make events • Corporate and holiday gifts ended the Tokugawa period, even 03-4540-7730 memorable. With a growing presence • Loyalty and incentive programmes pointing out bullet holes in the wooden gate of Yanaka’s Kyoo-ji, where the Shinsengumi attempted to make a final stand after losing the Battle of Ueno. I’ve often thought the downside of time travel would be losing modern conveniences. But, by time traveling this way, one is transported to the past without surrendering comfort. For moderately active tourists with a healthy sense of curiosity, what Vicki L. Beyer is a could be better? • vice president of the ACCJ. www.walkjapan.com Shop selling traditional senbei treats in Sendagi, Tokyo.

SEPTEMBER 2014 • ACCJ JOURNAL | 43

MoleskinAd.indd 3 8/5/14 9:57 AM Publicity Middle ManageMent MadneSS Why 70/20/10 Doesn’t Work in Japan

top down, mainly barking out orders the critical reason why dated theories and berating subordinates. like the 70/20/10 model for learning The bursting of the bubble in the and development are irrelevant here in late 1980s left a corporate hangover Japan. Both the 20% from the sempai with important side effects. Marketing and the 10% component from training and training budgets were slashed simply fail to deliver. as companies struggled to survive. Corporate training in Japan is Thirty-somethings in the 1990s became almost 100% ineffective. Old Japan the “lost patrol” – they moved up the loves lecture and Japanese trainers just ranks, based on age and seniority. love to talk. There is plenty of one-way Unfortunately, by the time the training traffic around the “What” and “How” faucet got turned on again, it went to but little or nothing around the “Why”. their younger hopefuls. The sempai “Distributed Intelligence” – using the missed out and the content of their full experience and smarts power of the inherited tutor curriculum became group - is rarely utilized. frozen in time. The postwar system If you were hoping for a post- enior leaders must work “The male, emphasised hard skills but had little clue training performance pick-up, then through people and the key about how to develop civilians. Today, good luck! Daily, battalions of corporate leverage group are Middle greying in their fifties and in senior roles, many trainees troop back to their desks and Managers. Doing more, faster, Corporate senior leaders have not been challenged resume hostilities, without making Sbetter with less, screams out for Boardroom by a new management idea in twenty any changes to how they do their job. delegation. Putting aside the issue of years. By the way, the psychological Einstein noted that we can define basic delegation nous on the part of the can continue and values gap between this senior insanity as “continuing to do the same leaders, the capability of the delegatees to pontificate generation and the millenniums things in the same way, but expecting a to pick up the shield and spear, makes now entering the workforce is vast, different outcome”. We must all be mad! or breaks organisations. from on high measurable in light years. Until OJT is re-ordered off a properly Middle Managers are the corporate but actual The Lehman Shock left a renewed educated baseline and the training glue. Market and system noise are legacy of instability. Lifetime delivered actually leads to behavior filtered, sorted, nuanced and passed workplace employment suffered collateral damage. change, then there will be no progress. up to senior leaders. They must also change is The demise of Yamaichi Securities put Middle Managers will continue to amplify the key direction and messages the loyal and diligent on the street, a squander their key role. They will fail to everyone below. Well, in theory this delivered hammer blow to the traditional worker/ to communicate in ways that trigger is the case - what about the practice? by Middle company compact. Post-Lehman, enthusiasm, inspiration, empowerment, Middle Managers in Japan are Managers.” training again took some intense blows and confidence. High levels of tutored by their sempai – their seniors. and so sempai-led OJT (On The Job engagement will never be achieved. The seniors themselves were similarly Training) has remained the central Critically, engagement is the magic tutored. Looking at the postwar period pillar of Middle Management education spring from which flows innovation, there are distinct periods of managerial in Japan. OJT’s philosophical and commitment and motivation in teams. mis-development. The military officers practical roots stretch unbroken to the The male, greying Corporate returning from the war came back to a pre-1945 Imperial Officer Academies. Boardroom can continue to pontificate devastated economy and were placed Want to confirm this? Ask yourself from on high but actual workplace in leadership positions in the rebuilt why there is still no equivalent in Japan change is delivered by Middle companies. The 1960s and 1970s saw of the West’s major business schools, Managers. Hands up who wants better Japan overtake the major European churning out the best and the brightest Middle Management in Japan? economies one by one. This was built Middle Managers? Before you even think about training off disciplined hard work and almost We are left with generations your Middle Managers, read the free feudal sacrifice of family. For those in of undereducated managers, report, “Stop Wasting Money Training. large companies, lifetime employment channeling their passed-use-by-date How To Get The Best Results From meant unquestioning dedication was unreconstructed sempai. They are all Your Training Budget”. To receive your expected. “Tough love” was meted swirling around a tight whirlpool, Free Report pick up your phone now out by the officer corps, now turned out of context and out of touch with and call 0120-948-395 or 03-4520-5469 corporate managers. Leadership was contemporary corporate needs. This is for a 24 hour Free Recorded Message. • Cutler spoke at a roundtable-type discussion on July 1.

00ACCJ.AUG.2014.indd 22 8/20/14 2:33 PM Diversity | Boards

ASKING THE TOUGH QUESTIONS Interview with Sakie Fukushima

By Brandi Goode

rime Minister Shinzo Abe more to do with learning quickly has set a goal for Japan about new companies and industries. to have 30 percent of its executive and managerial What assets can women bring P positions filled by women to the boardroom? by the year 2020, from the current A male colleague and fellow board 10 percent level. member once told me that women Sakie Fukushima, president and are often quite perceptive and point representative director, G&S Global out things that other people hesitate Fukushima was the first woman on many Japanese boards. Advisors, Inc., is a trailblazing to ask. Women have a way of asking Japanese executive who became the challenging questions that require When I attended business school first woman to serve on the board complex answers. in the United States, I was taught of directors of many high-profile, Male board members, even that the CEO’s most important task conservative companies. She also external ones, may feel compassion was to maximize shareholder value. serves as vice chairman of the Keizai for people on the other side of the In Japan, an ROE (return on equity) Doyukai (Japan Association of table, because they have been in that of 5–6 percent is acceptable, but in Corporate Executives). TheACCJ seat on their own company boards. the United States you are expected to Journal spoke to Fukushima about As a result, they may not feel as free show double-digit returns. In Japan, her experiences at the top. to ask the tough questions. shareholders, even institutional But I don’t have any vested investors, have long been ignored, ACCJ Journal: What challenges did interests, so I ask what I think are and they have been silent. you face while serving on boards? important and relevant questions. The Japanese system, however, Fukushima: My board experience Many women also have a strong maximizes the interests of all the started in the United States with sense of morality, so if something’s parties—internal, suppliers, and Korn/Ferry, where I worked for not consistent, women will often communities—it’s all-inclusive. 20 years, including 12 years on the point it out. In the United States, it’s board. Altogether, I have served been shown that the more females How can we sustain the on the board of directors of nine you have on boards, the fewer In the United Womenomics momentum? Japanese companies. The first was compliance issues arise. States, We just need to keep at it. For Kao, followed by Sony. example, we need to continue the In the United States, many What best practices can the it’s been Keizai Doyukai survey every year to boards are composed entirely of United States and Japan share? shown that evaluate where each company stands external members except for the I do not fully subscribe to the typical the more on the promotion of women. The CEO. In Japan, however, 90 percent US corporate governance model results should be shared widely, so of companies have an auditor because it tends to put too much females the survey participants can see what system, where the majority of board emphasis on shareholder value, you have is working for others. members are internal. I was an which can lead to an excessively Japanese companies feel very external member in all nine Japanese short-term view. Corporate on boards, competitive and typically don’t want boards I served on, so I felt I should governance in Japan has tended to the fewer to be seen as falling behind. The represent the view of outsiders. be internally focused. Only recently compliance view is, “Look at how well others are I never really felt different because have companies started taking doing; aren’t you ashamed you’re so I was a woman; the challenges had shareholders’ interests into account. issues arise. far behind?” •

SEPTEMBER 2014 • ACCJ JOURNAL | 45 Economy | Advocacy

REFORMS POINT TO LASTING CHANGE Corporate governance code key in third arrow of Abenomics

By John Amari

his summer, the ruling improving productivity was detailed Long time coming Liberal Democratic Party in the Growth Strategy Task Force’s For Benes, the LDP’s proposals have (LDP) announced its revised white paper four years ago, and the been a long time in coming. “Japan growth strategy, including a ACCJ’s position has been further is about 20 or 30 years behind T detailed plan to modernize refined in viewpoints almost every the times,” he said, “in mobilizing corporate governance practices. year thereafter. corporate governance to address According to the document, this Corporate governance reform systemic weaknesses. They’ve will be achieved through the has been on the political horizon made some changes, such as those implementation of a corporate in Japan since at least 2001 or 2002, addressing internal control systems, governance code, due to be finalized but it made a huge advance this year but most of the revisions do not get by spring 2015. when it became the lead pillar of the at the core issues.” On the same day, the ACCJ’s third arrow of Abenomics. As stated What had been lacking, he Foreign Direct Investment (FDI) in the administration’s policy, the continued, was root-and-branch Committee and the Growth Strategy purpose of the planned corporate reform, and the whole concept Task Force published the second reforms is to increase the earnings of instilling best practices for viewpoint this year on the topic, power of Japanese companies, a boards. This would involve, for “Further Implement Corporate topic that was never addressed as a instance, rules requiring the Governance Reform in Japan to major problem in the past. presence of independent directors, Spur Investment and Encourage In May, the LDP’s growth and structures enabling them Sustained Economic Growth.” The strategy committee proposed to effectively monitor company FDI Committee’s first viewpoint in sweeping changes to Japan’s executives, as set forth in a 2014 had, in fact, recommended outdated corporate structures in its corporate governance code. that a corporate governance code be “Japan Revival Vision” document. In part due to the ACCJ’s implemented. Recommended reforms included advocacy work, the corporate In light of the LDP’s the establishment of a corporate governance currents seem to be announcements and the recent governance code, installing In part flowing in the right direction. viewpoints, the ACCJ Journal sat multiple independent directors, and According to the new Company down with Nicholas Benes, chair enhanced disclosure to discourage due to the Law, if a company refuses to include of the Growth Strategy Task Force, cross-shareholding—where a ACCJ’s at least one independent member on and Kenneth Lebrun, chair of the publicly traded company holds stock its board, it could be required—via a FDI Committee, to survey Japan’s in another publicly traded company. advocacy “comply or explain” clause, a feature long journey towards corporate The revision of the Japan work, the Benes strongly pushed for—to give a governance reform. Revitalization Strategy this full account of the reasons. “The Growth Strategy Task Force June followed this framework, corporate “It’s not just ‘explain’ in the fine has been more successful than clearly stipulating a deadline for governance print somewhere; it’s explain in the we dared dream,” Benes began by implementation of the Corporate proxy materials and explain in your saying, “in helping the government, Governance Code (next spring), and currents company report as well. In addition, particularly legislators, understand making it clear that the Financial seem to be the president has to stand up at the the urgent need to raise the Services Agency and the Tokyo shareholder meeting and explain productivity of capital and labor in Stock Exchange will be accountable flowing in why it’s not possible to have an the Japanese economy.” for ensuring that the code adheres to the right independent board member, based The critical role played by international corporate governance on the specific circumstances of his corporate governance reform in standards. direction. company,” Benes added.

46 | ACCJ JOURNAL • SEPTEMBER 2014 Economy | Advocacy

The “comply or explain” clause in the Company Law provided a natural opportunity for Benes to propose a corporate governance code based on best practices that would also be enforced via “comply or explain” disclosure. Such disclosure enhances transparency and the ability of institutional investors to make decisions based on full knowledge of a board’s decision- making processes, thus enabling them to better perform their duties under the new stewardship code. Benes said these changes have the potential to bring Japan’s corporate governance culture up to date and untangle the historical gridlock caused by vested interests— principally, internal managers keen to keep the status quo, and the “stable shareholders” who support them. Moreover, Japan’s Revised Growth Strategy specifically states that the new Corporate Governance capital you invest in the economy, assets and labor to the most effective Code should harmonize with or you can increase productivity.” usage, and M&A helps do that.” international standards established Given Japan’s declining Both the LDP’s reforms and by the Organisation for Economic population, its best remaining the Growth Strategy Task Force’s Co-operation and Development— options are domestic and foreign recommendations have met principles that should accelerate capital investment, and increased resistance, however, not least from inward and domestic investment productivity—for instance, via the Keidanren (Japan Business activity, Benes said. rigorous governance that encourages Federation). companies to sell off under- Yet Benes and Lebrun remain Avenues for growth performing divisions on the mergers optimistic that this time, real Indeed, the changes are a minimum and acquisitions (M&A) market. change is coming for the country’s requirement to kick-start the FDI Committee Chair Kenneth corporate governance culture. Japanese economy, Benes said. Lebrun agrees. “M&A activity is As Lebrun said, “What the Abe After all, “there are only three critical for economic growth in John Amari is a administration and the LDP have ways to grow an economy: you can Japan. As the Japanese demographic consultant, writer, done, is recognize the link between and researcher with grow the number of people (the changes, they can’t add more labor experience working improved corporate governance labor population and the taxpayer to create growth. What they can do for a United and economic growth, and I think population), you can grow the is increase productivity by moving Nations agency. that’s really a first for Japan.”•

SEPTEMBER 2014 • ACCJ JOURNAL | 47

ACCJ Events | Past And Planned

1 4 Shun Kanda, Kazuhisa Shibuya, Massachusetts deputy chief Institute of domestic coordinator, Technology (MIT) Office of the Prime professor and Minister, gave a architect, gave a presentation in presentation on the Japanese at “Japan work of the MIT Prepares for TPP: A Japan 3.11 Initiative, Talk from a Senior during an event at Official,” held at the 1 2 the Tokyo American Tokyo American Club Club on July 24. on July 28.

2 5 Dr. Rami Suzuki, Mary Anne president and Jorgensen, senior group officer, Women in Business Global Business Committee vice Development Unit, chair–Kansai, ECL, discusses her announces the ACCJ experiences working fee waiver campaign in and her vision for women, at for the future of the ACCJ Kansai the pharmaceutical networking event industry, at an “Bella Nova Night ACCJ luncheon on #5,” on July 18 at the July 23 at the Tokyo Grand Front Osaka. American Club. 3 6 3 ACCJ Kansai The Chubu Women in Business Women in Business Committee leaders Committee hosted describe the ACCJ an interactive Kansai Walk-A-Thon lecture on “The to U.S. Ambassador Keys to Your Global to Japan Caroline Success: A Look Kennedy, at a at Presentations, reception held Meetings and on July 10 at the Negotiations,” InterContinental supported by Osaka hotel. Rebecca Irby and Rich Mirocco, on 4 5 July 16 at the Hilton Nagoya hotel.

Upcoming EVENTS Please visit www.accj.or.jp for a complete list of upcoming ACCJ events or check our weekly e-newsletter, The ACCJ Insider.

September 9 Crowd Funding and IP Tactics for Successful Businesses

September 26

6 Geopolitical Challenges and Economic Opportunities in Asia and Beyond: A Tour of the World with General (Ret.) David Petraeus facebook.com/The.ACCJ youtube.com/user/AmChamJapan

October 10 twitter.com/AmChamJapan linkedin.com/company/american-chamber-of-commerce-in-japan Mercedes-Benz Japan Cup 2014

SEPTEMBER 2014 • ACCJ JOURNAL | 49 HR | Communication

CAN YOU READ THE AIR?

By Andrew Silberman

interrupted Frank with, “Hey! It’s t’s not what he said, it’s how he supposed to be five to 10 minutes, said it that I really can’t stand.” and I’ve got a meeting to attend.” In the past couple weeks, Five minutes later, the speaker I’ve heard several people wrapped up and then eagerly “ described as “tone deaf,” and would be presenting for up to I Tone anticipated questions. none of them were in a karaoke bar. 10 minutes each, including a No one wanted to ask, but one One referred to a person giving a question and answer period. deafness in person, knowing that someone presentation, another to someone The first four presenters observed a business was supposed to offer a question, in an e-mail exchange, and the third the allotted time, answered two or tossed up a yes-or-no query. Frank’s to a candidate in a job interview. All three questions each, and moved sense has response? Three minutes of abstract three were perceived as tone deaf on. While none of the presenters everything words taking us, exhausted and due to their apparent lack of ability riveted the audience to their seats, to do with bored, to minute 18. to either “read the air,” empathize each connected in his or her How many of you have suffered with their audience, or simply know own way, and communicated a listening through that kind of presentation? when enough is enough. key message. to and The worst part is, Frank had Real tone deafness (the inability Then came presenter number no idea how bad he did. Frank to distinguish tonal relativity) is five, whom I will call Frank. empathizing likely thought he’d given the best extremely rare, and almost non- Well-groomed, with a powerful, with your presentation. However, once we existent in cultures that have tonal resonant voice, Frank had the look audience. shared his evaluations and footage languages. While many poor singers of a confident executive. He told recorded during his talk, he became claim to be naturally tone deaf, the audience he was going to share aware of how the audience actually perhaps as an excuse to avoid the a “challenging cultural experience.” felt about his presentation. The karaoke microphone, musician Little did they know that the real camera doesn’t lie, and his 18 William Allaudin Mathieu’s work challenge would be staying with minutes of infamy became a wake- shows that even that musical Frank for more than three minutes, up call for Frank. kind of tone deafness can be fixed let alone the five to 10 he was through training. supposed to take—or the 18 minute- Business-specific cases can also be discourse he subjected them to. During the interview addressed with a bit of coaching. After nearly five minutes into his A related tone-deafness often occurs “prepared” speech, Frank had yet to during an interview. It could be Case 1: Tone-deaf presenters introduce the “experience” he was during a job interview, a sales call The stage was set for a series of going to share. Five more minutes (another type of interview), or any presentations. Five managers went by and a colleague loudly one-on-one business conversation.

50 | ACCJ JOURNAL • SEPTEMBER 2014 HR | Communication

Take a look at the example below. Not in this case, although that is Remember that e-mail is not communication; What’s wrong with this dialogue? a common problem with e-mail’s proliferation. I presume most of us it is one-directional, and your tone is all Interviewee (extending know that writing in all caps is the business card): created in the mind of the reader. equivalent of shouting. No, Brad “Anderson desu, hajimemashite.” was just overly terse, responding Interviewer (offering her card): to a request that to Dave’s digital difficult to recognize how our “Hajimemashite. By the way, today’s “ears” sounded as if Brad was being written tone comes across to others. interview will be conducted in dismissive or condescending. English.” In English 101, we learn that there Solutions are different tones used in writing. The cure for tone deafness in Interviewee: These can range from formal to business starts, like so many “Hai. Yoroshiku onegai itashimasu.” informal and casual (some experts communication maladies, with add slang as a fourth option). awareness. Get feedback on Bizarre, isn’t it? The interviewer Dave was not referring to that how you sound to others. When just told the interviewee that she kind of tone, but to Brad’s lack of communicating in real time, pay would be conducting the interview acknowledgement. A simple “thank attention to your audience: What in English, and the (American) you” at the start of the message could do they say? How are they feeling? interviewee just goes right on have gone a long way to softening What are they looking at? Are they speaking in Japanese. Dave’s response to the missile. fidgeting or smiling? Tone deafness in a business sense When it comes to e-mail, you For e-tone deafness, it’s worth has everything to do with listening to want to connect with a given reader reviewing your messages before and empathizing with your audience. or readers. Remember that e-mail sending, taking time to edit them is not communication; it is one- (remember, most people will be E-tone deaf? directional, and your tone is all skimming, not reading), and adding “Brad is just so tone deaf. Check out created in the mind of the reader. in a friendly phrase or two to keep this e-mail!” Communication, on the other hand, Andrew Silberman the e-mail exchange positive. At In this third example, one business is a two-way game. is president and the hint of misunderstanding, pick associate we’ll call Dave was referring chief enthusiast of up the phone or walk over to the to another colleague (Brad), who Of the three types of tone-deafness AMT Group (www. person’s desk to clear things up. amt-group.com) he called tone deaf because of the reviewed (presenting, interviewing, and an elected If you have identified a tone-deaf “sound” of Brad’s e-mail. What did and e-mailing), e-tone-deafness governor of the colleague in your organization, slip Dave mean? Was Brad SHOUTING? is the toughest, because it is often ACCJ. them a copy of this article. •