TOKYOOctober 2 (News On Japan) – In Japanese business culture, a “playing manager” refers to a manager who oversees the team while acting as a front-line player. This role is usually taken on at the middle management stage, often at department head level, where the experience and knowledge gained has a significant impact on the individual’s career path.
Earth Corporation presidents Kracie and Loft navigated several crossroads during their journey, especially during their “playing manager” days.
As a ‘playing manager’ you must balance management of subordinates with active involvement in business life. Those who successfully overcome various challenges during this period often begin a path to top management positions. The three presidents share insights into their early years, how they overcame obstacles as managers, and their journey to becoming the heads of their respective companies.
Kracie President Masahiro Iwakura: Born 62 years ago, Iwakura became president of Kracie after leading the company through several critical periods. Although Kracie is known for its popular products, the company itself was not very well recognized. Kracie’s predecessor, Kanebo, was founded in 1887 and had a rich history, but faced a financial collapse in 2004 due to massive debts.
Iwakura joined Kanebo in 1985 and was assigned to the day-to-day merchandise sales department of the Osaka office. During his 16th year with the company, in 2000, he was promoted to the Human Resources department as department head. Around that time, he noticed ominous signs in the company. Kanebo’s collapse was mainly due to risky real estate investments during the bubble economy, which led to a debt crisis. However, many within the company were either unaware or dismissive of the impending financial problems.
In 2004, Kanebo sought support from the Industrial Revitalization Corporation of Japan (IRCJ) due to the financial collapse. Iwakura, a player manager at the time, worked to rebuild the company while serving on the front lines. With the intervention of the IRCJ, Kanebo’s cosmetics division was sold and the company’s rebuilding efforts began.
Iwakura found itself at a crossroads during the restructuring. Initially, he planned to manage the daily goods department using conventional strategies, focusing on cost savings and efficiency. However, the IRCJ advocated bold investments and aggressive reforms. Tensions between Kanebo’s old guard and the IRCJ were running high. As time passed, Iwakura began to see the benefits of the IRCJ’s approach. The turning point came when Iwakura decided to take an open-minded attitude and opt for bold innovation and investments. This decision led to the revival of Kanebo’s popular body soap, “Naive”, which became a symbol of the company’s turnaround.
In 2007, Kracie was founded as the successor to Kanebo’s daily goods, pharmaceutical and food divisions. Iwakura played a crucial role in the management of the new company and was eventually named president in 2018. His experience during the Kanebo collapse taught him that embracing risk is necessary for success. This year, he made another major decision to merge the company’s three separate business divisions into one, believing that continuous evolution is the key to the company’s success.
Loft President Koki Ando: Ando, โโโโ66 years old, is known as the president of Loft, a popular variety store known for its fun and unique product range. Loft has grown to 169 stores across Japan and achieved record sales of 107.1 billion yen last year. Ando’s journey began at Shibuya Loft, where he started as a founding member and a legendary buyer who contributed to Loft’s growth.
However, his path was not without struggle. During his time as a player manager, Ando faced numerous challenges, including managing product selections and navigating market trends. Despite the pressure, his perseverance and innovative ideas paved the way for Loft’s success.
Koki Ando’s role as game manager at Loft was not easy. He had to juggle managing his team while being actively involved in product selection, inventory management and staying ahead of market trends. During his early years, Ando faced fierce competition in the retail market, often experiencing setbacks and doubts about the direction the company was taking.
One of Ando’s biggest challenges came when he had to decide whether to make bold changes to the store’s product range. While the traditional retail model emphasized caution and consistency, Ando felt the need to take risks to keep the store attractive. This philosophy of offering a diverse, fun and unique range has become Loft’s hallmark. Ando’s willingness to experiment with products not only brought vibrancy to the store, but also fostered customer loyalty. His journey as a gaming manager, full of trial and error, was instrumental in shaping Loft into the successful retail chain it is today.
Masaki Tsukamoto, President of Earth Corporation: Known for its household goods and pest control products, Earth Corporation also has a story about navigating pivotal moments. Tsukamoto, who eventually became president, started his career at the company as a game manager. Like Iwakura and Ando, โโTsukamoto had to balance managing his team with the front lines of sales and product development.
During his early years, Tsukamoto faced several challenges, from controlling production costs to maintaining product quality. However, one of his most critical decisions came when he had to innovate in a saturated market. By introducing unique product lines and improving existing ones, Tsukamoto steered the company toward a more customer-centric approach, which played a crucial role in increasing Earth Corporation’s market presence.
In Japan, the role of ‘play manager’ is crucial to business operations. According to a survey, 95% of department heads and department heads in Japanese listed companies play the role of manager, underscoring their importance in Japanese business. This dual role requires managers to not only oversee their teams, but also actively contribute to achieving organizational goals through frontline work. Their experiences as managers often form the basis for their growth into leadership positions.
Each president mentioned in this article has shown that overcoming obstacles during their time as managers has shaped them into the leaders they are today. For example, Iwakura’s experience leading Kracie’s turnaround after Kanebo’s collapse taught him the importance of embracing change and risk. Ando’s journey at Loft demonstrated the value of constant innovation and flexibility in retail. Meanwhile, Tsukamoto’s focus on product development and customer-centric strategies led Earth Corporation to success.
Overcoming Crisis and Embracing Change For many of these executives, pivotal moments arose when they had to make difficult decisions that flew in the face of conventional business norms. For example, Iwakura had to put aside the pride of Kanebo’s long-standing brand and embrace the reforms proposed by the Industrial Revitalization Corporation of Japan. Ando, โโon the other hand, pushed the boundaries of traditional retail by including fun and unexpected products in the Loft range.
Source: BIZ
