2517 Losing Sight of the Goal: A Lesson from My Shisha Business

We often miss our goals when outcomes deviate from expectations. In those moments, it's tempting to reach for quick fixes—like patching a deep wound with a band-aid. But these stopgap measures rarely work. They fail because they don’t address the root causes, and more often than not, they lack a foundation in fact-based analysis.

Take my own experience with our shisha business. We’ve been hovering at the break-even point, so I asked our store manager, Kenji, for ideas on how to pivot toward stable profitability. Kenji, aware that our current status doesn’t inspire confidence among stakeholders, proposed a couple of ideas.

One was to partner with local companies and offer shisha sessions as part of their employee benefits—essentially a B2B approach to build a stable income base. The other was to provide consulting services for café operators.

Honestly, both suggestions made me uncomfortable. While creative, they felt misaligned with our original goal: to grow a high-quality shisha and café business. Especially the consulting idea—it’s simply too early. We’re still refining our own operations; it’s premature to advise others. He had a few other proposals as well, but none were grounded in the core objective we set for this fiscal year.

I shared my concerns with Kenji and reminded him of the balanced scorecard we created last month. I didn’t have to say much—Kenji is a sharp and capable team member. He immediately realized his proposals had strayed from the KPIs and strategic direction we had agreed upon. This is precisely why setting clear KPIs and aligning them with our mission, vision, and values (MVV) is so important. They serve as our compass.

I also encouraged him to revisit the business books I had previously recommended. He agreed, even saying he would purchase and read them. That small act reflects the kind of shared learning culture we’re trying to build.

This episode illustrates how easy it is to drift from your original purpose—to fall into what I call “the cliff.” We forget our golden rules, lose our direction, and end up reacting instead of acting. But having a well-defined MVV, clear goals, and measurable KPIs keeps us anchored.

I’m now reflecting on how to truly turn our business around, not through detours, but by returning to the fundamentals we committed to at the beginning of this fiscal year.

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. 

2450:Transforming a Shisha Café – From Lemon to Lemonade

 

There’s something deeply universal about the phrase, “When life gives you lemons, make lemonade.” It embodies resilience, optimism, and a mindset that can transform even the toughest situations into opportunities. But this concept isn’t just an inspiring mantra—it’s a practical philosophy for business and life.

I find myself drawing on this wisdom as I help lead a turnaround for a shisha café. On paper, it’s a solid business idea: a café near a major national university, only five minutes from the station, in a town filled with students. And yet, the business has been in the red for quite some time. This situation feels like a classic “lemon.” But I truly believe that with the right approach, this lemon can be transformed into refreshing lemonade.

The Lemon: Recognizing the Challenge

What makes this shisha café a lemon? At first glance, it may seem like a case of poor circumstances or bad timing. But the real issue lies deeper—it’s about aligning potential with the right vision. In business, as in life, a challenge often presents itself when the pieces don’t quite fit together.

It’s easy to get stuck in the mindset of seeing only the problems: the location isn’t perfect, the foot traffic is low, the target audience isn’t fully engaged. These are the "lemons" that we often focus on—the sour, bitter aspects of a situation that make us question whether it’s worth the effort. But these "lemons" also hold within them the seeds of possibility. The true power lies in how we perceive them.

Making Lemonade: The Power of Rethinking

To turn a lemon into lemonade, you must first embrace the challenge. It’s about seeing beyond the surface-level problems and tapping into what could be. This is where revolutionary thinking comes into play—a concept I’ve been exploring through 進化思考 (Evolution Thinking) by Eisuke Tachikawa. The core idea is that innovation is born from rethinking what is already in front of you.

In the case of the shisha café, the lemonade isn’t just about fixing what’s broken—it’s about transforming the entire experience. Revolutionary thinking invites us to ask: What if we stopped viewing this café as just a café? What if we started to see it as a gathering place for the local community, a hub of student life, or even a cultural experience?

This shift in thinking, this reimagining of what the business could be, is what turns lemons into lemonade. It’s about rethinking the essence of the situation and finding a new way to tap into its potential. The café doesn’t need to be a carbon copy of successful businesses in other areas—it needs to become something unique, something that resonates with the people who pass through its doors.

The Essence of Lemonade: Turning Setbacks into Strengths

At the heart of the lemonade concept is the idea that setbacks can become strengths. What we initially see as a disadvantage—whether it’s the location, the target market, or the current financial struggle—can actually become the foundation for something innovative.

One of the key lessons from 進化思考 is that evolution and growth often come from adversity. It’s in the moments when things aren’t working that we are forced to think differently, to pivot, and to find new solutions. Innovation is the lemonade that comes from squeezing the lemon of adversity.

For the shisha café, the current struggles aren’t simply obstacles to overcome—they are opportunities to rethink what the business can be. Perhaps the very challenges that seem to be holding it back are what will push it forward. The proximity to a university, while initially seen as a challenge, could actually be its greatest asset. It’s not about changing the location or moving elsewhere—it’s about changing the way we think about that location and finding new ways to engage the people nearby.

Lemonade Is a Mindset

Turning lemons into lemonade isn’t just a strategy—it’s a mindset. It requires seeing challenges as opportunities, setbacks as moments to innovate, and problems as the raw materials for success. This mindset shifts your focus from what’s going wrong to what could go right. It allows you to embrace the full potential of every situation, no matter how difficult or discouraging it may seem.

In business, this mindset is invaluable. It gives you the resilience to keep going when things aren’t working, the creativity to find new solutions, and the optimism to believe that even the most difficult situations can be transformed.

For the shisha café, this mindset is what will allow us to transform the business. We’re not just fixing problems—we’re creating a new vision, a new way of thinking, and ultimately, a new way of operating. The lemonade isn’t just a sweet drink made from sour lemons—it’s the result of revolutionary thinking, persistence, and a commitment to finding success even in the face of adversity.

Conclusion: Turning Lemons into Lemonade in Business

In every business, there will be lemons—challenges, setbacks, and moments of doubt. But it’s in these moments that we have the greatest opportunity for transformation. By rethinking the situation, embracing the challenges, and turning adversity into innovation, we can turn even the sourest of lemons into the sweetest of lemonade.

For me, the shisha café is more than just a business turnaround project—it’s a reminder that with the right mindset, anything is possible. When life gives you lemons, don’t just settle for making lemonade—use it as an opportunity to create something entirely new.

2429a: Bridging the Generation Gap: A Father-Son Collaboration in Business

 

As I prepare for our upcoming "Generation Cross-Border" event, I find myself reflecting on a recent experience that perfectly encapsulates the generational differences we aim to explore. This experience involves my son, Kansai, and his journey into the world of business.

The Smart Ring Project

In May, Kansai launched a project to sell OEM-made smart rings using crowdfunding. The launch was successful, acquiring a substantial number of supporters, and we are now gearing up for the delivery scheduled in October. However, before we can reach that milestone, we face several significant challenges—one of the most pressing being the acquisition of a telecommunication permit from the Ministry of Internal Affairs.

The Challenge of Collaboration

Our OEM partner, JJ, is an overseas company with experience in obtaining such permits. While there are alternative agents in Japan, JJ offered a reasonable price, leading Kansai to choose their services. He asked me to review the proposal, and I immediately noticed some concerns: the proposal lacked a clear delivery date, the deliverables were vague, and the payment terms required us to pay the full amount upfront upon placing the purchase order.

I advised Kansai to negotiate these points, emphasizing the importance of clarity and secure payment terms. My perspective, shaped by years of experience, values caution and thoroughness to mitigate risks.

Generational Perspectives in Business

This interaction highlighted a stark contrast in our approaches. Kansai, a member of Generation Z, favors speed and innovation, valuing quick action over detailed scrutiny. My approach, rooted in the values of Generation Y, leans towards careful planning and risk management.

Kansai proposed using PayPal as a risk mitigation tool for the overseas transaction. According to him, PayPal offers reimbursement if the deliverable does not meet the requirements, providing a layer of security in case things go wrong. This was a novel concept for me, as I have always relied on more traditional methods of securing business deals.

A Dialogue of Generations

A few days later, Kansai and I had a candid conversation about our collaboration. Kansai, still a student and working under my company, Growth Unlimited Corporation (GUC), expressed frustration with the perceived delays in decision-making. He mentioned considering starting his own company to have more control and agility.

While I don't intend to intervene in his decisions, I realized that my advice, based on years of experience, might sometimes seem like a hurdle to him. Kansai’s approach, though riskier, is also valid and aligned with the fast-paced nature of modern business. This realization made me reflect on the generational gap between us. While my methods are tried and tested, Kansai’s willingness to embrace new solutions like PayPal demonstrates a different, yet equally valuable, way of navigating business challenges.

Conclusion

This experience underscores the importance of bridging the generational gap in business. Both approaches—my cautious, methodical one, and Kansai’s quick, innovative one—have their merits. As we prepare for our face-to-face discussion during his summer vacation, I am keen to understand more about his perspective and find ways to integrate our approaches.

In our "Generation Cross-Border" event, we will explore these themes further, discussing how different generations can effectively collaborate and learn from each other. I invite you all to share your experiences and insights on generational collaboration in business. How do you balance traditional wisdom with innovative approaches? Let’s engage in this important dialogue and find common ground to move forward together.

2423: The Impact of the Status Quo on Our Lives

 

The status quo, or the current state of affairs, can significantly influence our decisions and our lives. Understanding the impact of the status quo and actively working to challenge it can lead to positive changes and growth. Let’s explore the effects of maintaining the status quo and the benefits of stepping beyond it.

The Comfort of the Status Quo

The phrase "If I don’t know it…" is common in our lives, highlighting how ignorance can sometimes be blissful. Staying within the familiar can be both positive and negative.

Negative Impact: For instance, when faced with criticism or rejection in romance, not knowing certain things can sometimes maintain a sense of calm. There are situations where ignorance might indeed provide a temporary peace of mind.

Positive Impact: On the other hand, being aware of opportunities can lead to career advancement or new relationships. Exposure to diverse experiences and networks can foster innovation and creativity. Typically, we stay in our comfort zone due to the status quo bias, which hinders our ability to make agile decisions and embrace change.

Major Causes of the Status Quo Bias

Several psychological factors contribute to the status quo bias:

• Choice Paralysis: The fear of making the wrong decision can lead to inaction.

• Loss Aversion: The tendency to prefer avoiding losses over acquiring equivalent gains.

• Mere Exposure Effect: A preference for familiar things.

• Sunk Cost Fallacy: Continuing a behavior due to previously invested resources.

• Cognitive Dissonance: The discomfort of holding conflicting thoughts or beliefs.

• Default Bias: The inclination to stick with pre-set options.

Personal Reflection

I used to strongly adhere to the status quo, preferring solitude and pursuing unique interests privately. However, my MBA experience was a turning point, prompting me to engage more aggressively with others and expose myself to new experiences. Despite this, according to the StrengthsFinder report, my "Woo" (Winning Others Over) strength was ranked 31 out of 34, affirming my introverted nature.

Woo in Contrast to Introversion: Having Woo ranked low (31 out of 34) suggests that I am likely more introverted, preferring deep, meaningful interactions over a broad network of acquaintances. This doesn't mean I can't connect with others effectively, but I might find energy in solitude and one-on-one interactions rather than in large social settings. My experience in an MBA program helped me to adapt and push beyond my natural preferences, demonstrating that strengths can be developed and leveraged in different contexts.

By staying calm and isolating information, we can easily fall into the status quo paradigm, limiting our thinking to what we already know.

Embracing Change

Acknowledging my fears of public speaking and doubts about my knowledge, I realize the importance of continuous learning, networking, and staying updated with the latest trends and technologies. Writing this blog reminds me of the need to challenge my status quo and remain open to new ideas and opportunities.

2408:Reframing Challenges: A Lesson from Nanjing

Introduction to a Transformative Experience

In 2011, I had the unique opportunity to work on a construction project in Nanjing, China. This experience not only exposed me to the complexities of international projects but also introduced me to an exceptional individual, Yasuda-san, from Toyo Engineering Corporation.

The Challenge of Leadership and Time Management

Yasuda-san, a construction manager and a Grand Master in the department, was an enigmatic figure. Our paths crossed for the first time on this project, and given his senior managerial position, direct interactions were initially limited.

Facing Overwhelming Odds

The project was in a precarious state upon his assignment, plagued by significant time overruns. It was a testing phase, and our team was under immense pressure to meet a rapidly approaching deadline. The atmosphere was one of near resignation, as every task remaining seemed to lie on the critical path, making breakthroughs seem almost impossible.

A Strategic Shift in Thinking

Yasuda-san, an avid Majan player, demonstrated a strategic mindset that I believe was honed by his hobby. It was in this high-stress environment that his ability to reframe situations truly shone. While all of us were mired in the belief that no viable solutions were at hand, Yasuda-san dissected the problem with a different approach.

Innovative Problem Solving

His strategy was simple yet effective: disassemble and analyze each process to identify potential for parallel execution. This method, common in troubleshooting, became a catalyst for a significant shift in our approach. Yasuda-san's deep dive into the project's processes allowed him to reframe our strategy, moving away from conventional thinking. His insights revealed that certain activities, previously thought to be sequential, could indeed be executed in parallel.

Conclusion: Embracing the Power of Reframing

The success of the Nanjing project, thanks to Yasuda-san's leadership, stands as a testament to the power of reframing in overcoming challenges. It's a skill that I've since endeavored to incorporate into my own professional toolkit, reminding me that sometimes, the solution isn't about working harder, but rather, thinking differently. This experience with Yasuda-san not only resolved a critical project issue but also taught me a valuable life lesson: when faced with seemingly insurmountable challenges, the key may lie not in the problem itself, but in how we choose to view it. Embracing the power of reframing can open doors to innovative solutions and pave the way for success, both in professional environments and in personal endeavors.

2402: Reflecting on the Globalized World - A Personal Journey

Following my previous blog, No. 2401, where I discussed the acceleration of globalization in recent decades, I'd like to delve deeper into its effects on ordinary city life and lifestyles.

As a professional dedicated to globalization, I've always focused on maximizing work efficiency through learning lessons and encouraging standardization. This has been the cornerstone of my life's work.

Two decades ago, during my stay in a foreign country, everything seemed new and uniquely designed to local tastes and needs - from phones and toilets to baths, irons, and trains. The distinctiveness of each city was a source of fascination for me, a young twenty-something then. This uniqueness in industrialization and development was, in a way, a delightful part of my overseas experience.

However, over time, I've observed a significant reduction in this uniqueness. Now, wherever you go, you see global models like iPhones and Android phones, and cities often have stores like ZARA, GAP, and Uniqlo offering global line-ups. The spread of IKEA furniture, streaming music services, and even the intangibles like lifestyle influenced by social media platforms like SNS, YouTube, and Instagram, as well as mentality and culture, seem to have converged towards a 'global best practice.' This franchising and homogenization of global culture is a key aspect of globalization.

Recently, living in Setagaya, I've noticed changes even in the Soshigaya shopping street. What used to be unique, independent shops have been replaced by franchise stores, a trend that's been ongoing for decades.

The word 'autonomy' is fundamental, but I realize my role in globalization might inadvertently be diminishing the very uniqueness that sprang from autonomous spirits. This realization has led me to a new insight: how can I contribute to an autonomous society and organization while respecting their unique identities?

This is the question I now reflect upon and aim to address through my life's work in business. How can I redeem the loss of local uniqueness and autonomy that globalization might have caused? This is a challenge I am eager to tackle.

2319:The Power of Patience: How LRM Enhances Decision-Making

Introduction:

Building on the discussions in my previous blog (No. 2302), I want to share a personal story that illustrates the Last Responsible Moment (LRM) concept, a key principle in Agile project management and Lean thinking. LRM advocates delaying decisions until they become critically necessary, yet still allows for a successful outcome.

My LRM Experience:

Last autumn, I faced a practical situation that called for the application of LRM. My car's winter tires, mounted on the wheels used for summer tires, needed to be replaced. Planning ahead for the next summer, I decided to buy spare wheels for the summer tires so I could handle the replacement myself in my parking lot.

I searched for suitable second-hand wheels on Japanese online marketplaces. Fortunately, I found a perfect set of genuine wheels from a car maker at a reasonable price, although they came with used tires. I quickly decided to purchase them.

The wheels arrived in excellent condition, with almost no scratches. It appeared that the seller had replaced them with a custom set shortly after buying the car. To my surprise, the wheels included nearly new winter tires.

Here's where the LRM principle comes into play. Just two weeks after purchasing and replacing the winter tires, I found the exact wheels I initially wanted, equipped with fresh winter tires. Had I waited to purchase the winter tires until after finding these wheels, I could have saved about $1,000.

Reflections:

The challenge was the unpredictability of finding my preferred wheels, especially ones paired with fresh summer tires. In November, with the winter season beginning, I rushed to make a purchase, influenced by System-1 thinking and the concept of a time discount rate (as discussed in blogs No. 2311 and No. 2303). However, this decision, contrary to the LRM approach, led to an unnecessary expense.

Lessons Learned:

Decision-making often occurs under uncertainty. While some decisions turn out to be correct, others do not. This experience taught me the importance of not overly regretting suboptimal outcomes. It's crucial to have a margin for error and avoid risking everything on one decision. Keeping our investments within manageable limits allows for easier recovery with minimal extra effort and cost.

Conclusion:

A relevant Japanese proverb, "果報は寝て待て" (Good things come to those who wait), echoes my experience. While I usually support the time discount rate method, this incident has given me a deeper appreciation for the Last Responsible Moment strategy, highlighting how patience can sometimes prevent unnecessary expenditure and effort.

2311: Embracing an Effortless Lifestyle for Optimal Growth: A Counter-Intuitive Approach

One of my core beliefs, which I've touched upon in this blog, is the notion of living an effortless lifestyle. Far from promoting laziness, this concept is about maximizing efficiency and effectiveness, both professionally and personally.

Why Effortlessness?

I often refer to the book "Make It Easier to Do What Matters Most" by Greg McKeown for further understanding. I read it multiple times a year to recalibrate my thoughts and ensure I’m on the right path. The book perfectly encapsulates my approach to life: focus on your strengths, preferences, and areas of expertise to achieve natural, effortless excellence.

The Skeptics Among Us

Some of my highly literate friends and entrepreneurial peers have raised concerns about this mindset. They argue that focusing only on your strengths could potentially limit your growth, particularly if you're at a career crossroads or looking to discover untapped potential.

Addressing Criticisms

The skepticism usually stems from a misunderstanding of what I mean by "effortless." I don't mean to oversimplify the complexities of life but rather to emphasize the untapped benefits of making things less strenuous. If my friends understood the deep logic behind an effortless lifestyle, I believe they'd fully endorse it.

The Core Benefits

While there are many books that delve into the intricate advantages of an effortless lifestyle, let me highlight the essence of it here:

Problem-Solving: Always ask, "How could this be easier?" Whether it's a business decision or a personal dilemma, asking this question opens up new perspectives.

Two Paths: There are generally two ways to approach challenges:

1. Forcing a solution by pushing your limits.
2. Finding an easier, more effective way to achieve the same result.

The Power of Reframing

In "Thinking, Fast and Slow" by Daniel Kahneman, he introduces two modes of thought: "System 1" is fast and emotional, while "System 2" is slow and logical. The idea of effortless living encourages us to pause and engage our "System 2" thinking to find better solutions.

A Practical Example

To illustrate, let's consider an example from "WHAT'S YOUR PROBLEM" by Thomas Wedell-Wedellsborg, which talks about a building with a slow elevator. Most people would immediately think of costly solutions like replacing the elevator or upgrading the motor. However, the real issue was the discomfort customers felt while waiting.

The effortless solution? A full-length mirror next to the elevator. It distracted people, making the wait more bearable. Complaints vanished, and the cost of this fix was minimal compared to a system overhaul.

In Conclusion

This blog combines insights from three seminal works that collectively make up the foundation of my beliefs. I will continue to provide examples of how this effortless philosophy can make a significant difference in your life.