2509 : Nissan and Honda: A Failed Partnership Reflecting Conservative Barriers to Innovation

In my previous blog, I discussed the deep-rooted cultural barriers that can hinder transformation in conservative companies. A recent example that highlights these challenges is the failed partnership proposal between Nissan and Honda, where Nissan ultimately rejected Honda’s idea of becoming a group company under Honda’s umbrella. This situation not only underscores the difficulties of collaboration in the face of entrenched corporate cultures, but it also mirrors the very cultural barriers I addressed in my earlier post.

Nissan: A Conservative Model

Nissan has long been seen as a giant in the automotive industry, known for its stable history and unique technologies. However, like many large, publicly listed companies, it has struggled to embrace the kind of change necessary to secure its future in an increasingly competitive global market. This reluctance to change, or even entertain innovative ideas, reflects a conservative corporate culture that values tradition and autonomy over collaboration and transformation.

In the failed collaboration with Honda, Nissan's leadership likely saw the proposal as a threat to its independence, a threat not just to the company itself but to the way things have always been done. As I mentioned in my previous blog, many conservative companies tend to attract employees who are comfortable with maintaining the status quo. These individuals often lack the mindset required to drive transformation, further contributing to the difficulty of overcoming cultural barriers.

Honda: The Innovator

Honda, on the other hand, has positioned itself as more open to change and innovation. With a reputation for adapting to new technologies and exploring new business models, Honda’s culture is far more flexible compared to Nissan's. Yet, despite Honda’s forward-thinking approach, its proposal was met with resistance from Nissan. This rejection highlights a critical issue I raised earlier: even when one company pushes for change, the deeply embedded culture of another can prevent progress.

The Root Cause: Cultural Barriers to Innovation

The failed Honda-Nissan partnership is a direct reflection of the cultural barriers I outlined in my previous blog. Nissan's conservative corporate culture, which values tradition and stability, led to a rejection of an opportunity that could have driven both companies forward. Much like the conservative companies I mentioned earlier, Nissan's internal culture failed to recognize the necessity of change in a rapidly evolving market. This situation serves as an important reminder that cultural barriers are not just a challenge for companies—they are also present in their employees, who may resist change due to a lack of exposure to new ways of thinking.

Lessons for Corporate Transformation

The Nissan-Honda debacle underscores the challenge of overcoming cultural barriers to innovation. As I pointed out in my previous blog, companies like Nissan are not alone in facing these challenges. Many well-established organizations, especially those with long histories, struggle to embrace change because of the deeply ingrained corporate cultures they’ve developed over time. This is where leadership plays a critical role in recognizing and addressing these barriers.

For companies that want to transform and stay competitive, it’s essential to take a hard look at their internal cultures and hiring practices. As I mentioned before, attracting the right talent—those who can drive change—requires more than just offering a stable work environment. It requires fostering a culture that is open to collaboration, new ideas, and innovation.

The failed Nissan-Honda partnership is a stark reminder that cultural biases and resistance to change can undermine even the most promising opportunities for growth. Overcoming these barriers requires both leadership and employees to shift their mindset and embrace a future where transformation is not just necessary, but inevitable.

2508 : Overcoming Cultural Barriers in Conservative Companies: A Challenge for Transformation

For me, this is a very fotunate position because my customers and my company are publicly listed. These companies are typically conservative, and there’s growing recognition, both internally and externally, that we must embrace change to become more sustainable. As Peter Drucker famously said, "Culture eats strategy for breakfast." This is particularly true for conservative companies, where the culture can often be a significant barrier to innovation.

We evaluate these companies, and the bias stemming from their culture becomes clear. The reluctance to change often stems from a long-standing history of success. These companies, many of which have been around for over 50 years, possess brilliant histories and unique technologies that have helped them remain competitive in the market. However, as times change, there’s a growing need for them to adapt and evolve.

Now, let’s focus on employees. When new employees join a company, how much do they really know about the corporate culture? Fresh graduates may not fully recognize the impact of this culture when they first enter the company, but it’s easy to assume that many of them expect the traditional, conservative business methods because they’re drawn to the stability and legacy these companies offer.

These publicly listed companies may follow a trend in business methods or frameworks, but surprisingly, many people within these organizations don’t fully understand them or aren’t interested in them. Most employees are highly qualified and aware of the necessity of change, but there’s often a gap between recognizing the need for transformation and actively pursuing it.

For companies seeking transformation or aiming to become more innovative, I see hiring practices as a major challenge. Without the right approach, these companies will continue attracting conservative candidates who fit the current image of the company. The key issue is that candidates who could drive transformation may not even be applying, as they might perceive these companies as too traditional or resistant to change.

In this blog, I want to share my thoughts on how conservative corporate cultures and their cultural biases are not just ingrained in the companies themselves but are also reflected in their employees. Overcoming these barriers is essential for any transformation, but it’s a significant challenge that requires concerted effort both from the company’s leadership and the employees themselves. 

2507 Reflections on Quitting Alcohol: A Journey of Discovery

 Since January 2023, I made the decision to quit drinking alcohol. I shared this experience in a previous blog post, where I explained that the decision was driven by my goal of succeeding in exams in March. Initially, I thought I would return to the habit after the exams, but I found that the benefits of staying sober were much greater than I anticipated. So, I chose to continue this path until today.

Two days ago, I had a farewell dinner with my colleagues and staff at Air Liquide. As a gesture of goodwill, they invited me to enjoy my favorite Japanese sake, "剣菱黒松," for the last dinner before I moved on. I drank about 2 Go (approximately 360 mL) over three hours. It had been two years since I last drank at a public dinner, and I thoroughly enjoyed the taste of the sake. I can confidently say that it's my number one favorite.

As I write this blog post two days later, I find myself back at my desk, taking a moment to reflect on the experience. Normally, I would have written this post the day after, but I noticed a lack of motivation. I believe it might be because of the alcohol. During the dinner and the following day, I felt good and wasn’t hungover at all. This is likely due to my strong alcohol and aldehyde enzymes. I even checked my enzyme level, and I was found to have a level 4 as the highest tier of alcohol enzymes.

Despite this, I recognize that my mentality has been somewhat off recently. If I were to describe it metaphorically, I felt like I was afraid to move forward—staying home, unable to think creatively. After 48 hours, I feel like I’m returning to my usual self, resuming my creative flow, reflecting on my business situation in Kyoto, and working on summarizing my private consulting projects.

Looking back on 2024, I realize it has been a year of significant achievements, and I believe quitting alcohol may have played a role in my success. If I had continued drinking, I am not sure I would have accomplished everything I have so far.

At the dinner, I enjoyed the sake, but looking back, I realize that I could have enjoyed it just as much without drinking. Given the impact that alcohol had on my motivation and creativity afterward, I’ve decided that I will not drink again until my professional challenges are over. There is so much more to life than the momentary pleasure of drinking.

I would like to take a moment to express my heartfelt thanks to my colleagues and staff for making this farewell dinner so memorable. Your warmth, support, and thoughtful gestures during this transition mean the world to me. I am deeply grateful for the opportunity to work alongside such an incredible team, and I will carry the memories of our time together with me as I move forward.

2506 Bridging the Gap: Project Engineers and Project Management Challenges

In my latest consulting engagement, I had the opportunity to work with a client that has been a leading company in their industry for over 100 years. As part of my role, I was brought in to reinforce their project management practices, which is a typical request from companies seeking to enhance operational efficiency and project success.

From day one, I identified a significant gap in project management awareness among the team of Project Engineers (PEs). In this company, the role of a PE encompasses both process engineering for auxiliary packages and project management activities, with responsibilities split approximately 50:50. However, this dual responsibility has resulted in a dilution of the project management function, as PEs are unable to fully focus on their management tasks due to the demands of their engineering work.

This situation led me to reflect on a critical question: To what extent is the role of a Project Engineer standardized in organizations that do not specialize in project management?

In my professional opinion, PEs should primarily focus on project management and operations in accordance with PMI-PMP guidelines. Simply put, both PEs and PMs should manage cost, time, and risk while adhering to the 12 essential project management knowledge areas. However, the reality in many organizations, including my client, is quite different. PEs are often overburdened, juggling engineering tasks and project management responsibilities, leading to inefficiencies and potential project risks.

This challenge is not unique to this company. Many organizations expect their PEs to handle a vast range of responsibilities, requiring them to manage both technical and managerial aspects of projects. This places immense pressure on PEs, often leading to burnout, unforeseen workloads, and uncertain career trajectories. The broad scope of project activities and the unpredictable nature of challenges further complicate their roles.

Looking ahead, I am committed to delving deeper into this issue in the coming year. My goal is to develop a consulting and seminar package tailored to minimizing project failures by focusing on personalized project operations. I strongly believe this is a prevalent issue within the project management industry in Japan, and addressing it can contribute to improved project success rates and better career development for PEs.

As the landscape of project management evolves, organizations must recognize the importance of clearly defining the roles and responsibilities of their project teams. Proper alignment with best practices and international standards can help ensure that PEs are not stretched too thin and can contribute effectively to project success.

I invite my peers and fellow project management professionals to share their thoughts and experiences on this topic. Together, we can work towards creating more sustainable and efficient project environments for all stakeholders involved.