Diversity becomes visible the more dialogue we have. TANAKA HOLDINGS President, Vice President and Executive Officer Tomofumi Iishi

From Engineers to Management: Globalization is an Urgent Challenge

Satoshi Ichii, President and Representative Director, Vice President and Executive Officer of TANAKA HOLDINGS. Joined TANAKA PRECIOUS METAL TECHNOLOGIES in 1985. After serving as Ichikawa Plant Manager, Shonan Plant Manager, General Manager of the Chemical and Recovery Division, and Director, he was appointed Managing Director in 2012 and Senior Managing Director in 2014. In 2018, he became a Director of Metalor Technologies International SA (based in Switzerland) (current position). In June 2020, he became Senior Managing Executive Officer, Director, and Head of the Business Strategy Division of TANAKA HOLDINGS. In March 2022, he became a Director of LT Metal Co., Ltd. (current position). In January 2024, he will become Vice President and Executive Officer of TANAKA HOLDINGS and Vice President and Executive Officer of TANAKA PRECIOUS METAL TECHNOLOGIES (current positions). Photo by: Are Takagi

───Please tell us about your career up to this point.

Mr. Tomofumi Ishi (hereinafter Ishi): After joining the company at the age of 22, I was assigned to the manufacturing technology department at the Ichikawa Plant in Chiba Prefecture, where I was involved in developing recovery and refining processes associated with the recycling of precious metals as a chemical engineer. It was a very valuable experience as I was able to consistently handle everything from basic research to industrialization over a period of 10 years, during which I honed my skills in this field.

After that, I transitioned from management within the factory to quality and analysis management, serving as the manager of Ichikawa, Shonan, and the head of the Chemical Recovery Division. In 2018, I was appointed as a director of Metalor Technologies International SA (hereinafter referred to as Metalor), a company that refines precious metals and manufactures and sells precious metal products, which became a wholly owned subsidiary in 2016, and was stationed in Switzerland for two years. The experience I gained during this time has greatly contributed to my current efforts in promoting global management.

───You became Vice President, Executive Officer and Representative Director in January 2024, and you are also serving as the head of the Business Strategy Division and the Industrial Business Division.

City Stone: Currently, it has three main roles. The first is to set guidelines and directions for product development that will shape the Company's future. The second is to promote global management and advance the integration of METALOR and the TANAKA PRECIOUS METAL GROUP. The third is to coordinate the activities of the departments related to the current industrial business.

TANAKA PRECIOUS METAL GROUP will decline if we do not promote globalization, and we have that sense of crisis. The reason is our business structure, which originally had factories in Japan and exported to Asia. From now on, we must establish a production system closer to the market, or we will not be able to survive in global competition.

​Especially for companies like ours that deal in products based on precious metals, recycling holds a position of extreme importance in business strategy. The current challenge is to minimize lead time, or the time precious metals are held, from product manufacturing to recycling. Achieving this requires the integration of production sites and recycling plants. We believe that it is essential for maintaining competitiveness going forward to establish and accelerate this cycle on a global scale.​

At Shonan Plant, I became aware of staff's voices and changed the way I spoke.

──As you transitioned from being a technician to being involved in management, what kind of change in mindset was necessary?

市石：I have not felt much of a gap myself. This may be because, during the process of developing technologies, I have always kept a business perspective in mind. I have met with customers, and through collaboration with the sales department, have directly understood customer needs, technological trends, and business trends, and have gone through a process of reflecting this in development. I believe this experience has also been very beneficial in management.

When it comes to people management, I had to adapt my approach according to changes in the environment. During my time at Ichikawa Plant, which was my first experience in a managerial position, everyone was familiar with each other, and looking back, there was not much diversity. I felt that we could understand each other through tacit understanding and that we could understand each other even if I used somewhat strong words.

However, when I transferred to the Shonan Plant, I was told that "Mr. Ishi's words are harsh." I realized that leadership under conditions of high homogeneity, as had been the case until then, would not be possible at all. The higher the position, the more strongly expressions are conveyed directly, so I have to start from a rather "mild" level. I learned that it is necessary to understand how others perceive me and to interact in a way that allows both parties to feel a sense of safety.

Specifically, I try to avoid misunderstandings and ensure effective communication by following the order of stating the purpose, explaining the background, and then making the request. I still often make mistakes, though.

Even now, I sometimes reflect on my remarks when I get home and think that I will express myself differently next time. It's a repeated process of trial and error.

Initiatives to Promote DE&I to Change Organizational Culture

Photograph by: Are Takagi

──I understand that you were assigned to Switzerland as a director of METALOR for two years. Did you experience any differences in organizational culture?

Ichishi: I was surprised when I was assigned to my post that the concept of work-life balance is completely different from that in Japan. I felt that the productivity of white-collar workers was more than twice that of ours. While they place great importance on private life, they also complete their work within about seven hours. If they don't, they risk being fired.

Through its ongoing efforts, the use of IT systems, and the careful selection and standardization of tasks that do not need to be performed by people, it has been increasing efficiency. Its decision-making is also rational and swift. It believes that in business, it is better to make decisions quickly even if there are some mistakes.

In Japan, there is a tendency to fall into excessive consensus and perfectionism in an attempt to minimize mistakes. For example, even in deciding on capital investments, there is a tendency to be overly particular about details, and this can lead to time-consuming processes that may result in missed business opportunities. This sense of speed is particularly important in headquarters functions.

On the other hand, it is often said that the introduction of democracy and diversity slows down decision-making. However, from my experience in Switzerland, this is not necessarily the case. They also go through democratic processes, but ultimately the top makes the decision, and everyone follows it. A similar trend can be seen in American companies.

In Japan, individual opinions may continue to be expressed even after a decision has been made, which can result in delays in the decision-making process. While Japan's approach may be better in some cases of individual optimization, I feel that, on the whole, there is a higher likelihood of business losses.

──What direction do you think is desirable for the organization's decision-making process going forward?

MISEKI: I believe that in order to strengthen an organization, it is desirable to have prompt decision-making and a culture of quickly following the decided direction. However, as a prerequisite, it is essential to create an environment in which diverse opinions can be shared. It is the responsibility of top management to create such an environment.

It is also important to ensure diversity in these forums for exchanging opinions. Currently, our management meetings and group management committees are almost exclusively male. While women participate as external directors on the Board of Directors, the organizational structure is fundamentally male-centered. Although it is difficult to dramatically change this situation in a short period of time, we recognize that gradual reform is necessary.​

The more we engage in dialogue, the more we realize that there are still things we do not understand.

Photograph by: Are Takagi

──What specific initiatives are you taking toward organizational transformation?

MISEKI: I believe it is particularly important to increase opportunities for young female employees to participate in executive meetings. Currently, these meetings are mainly attended by male employees, and female employees have limited opportunities to experience the decision-making process of management. I believe that improving this situation will lead to the promotion of women's participation in the long term.

We are also strengthening initiatives to promote men's participation in childcare. For example, if a male employee says, "I will take one month of childcare leave," I might respond, "Isn't that a bit short?" However, some female employees have the view that, "I want to prioritize a family centered around my children, so I would like my husband to focus on his work." Therefore, I believe it is important to carefully listen to each individual's hopes and feelings regarding their work-life balance.

We are also reforming our systems. In the past, it was difficult to take paid leave on the day of the leave, and there were restrictions on the system for substituting holidays, which made it difficult for employees with childcare responsibilities to take sudden leave. To address this issue, we will change our systems starting in 2024 to allow more flexible use of paid leave.

We are also strengthening communication with employees. In addition to town hall meetings led by the President, I have been holding regular one-on-one meetings with managers and leaders in the industrial business I oversee since 2020. Furthermore, over the past year, I have been increasing opportunities for dialogue with general employees.

──Why do you think it is important to increase dialogue with regular employees?

市石：The specific trigger was an employee survey conducted in 2023. Various opinions that we had not recognized, as well as harsh voices and challenges directed at management, came to light, and the sense of crisis that “without a better understanding of the actual situation at the workplace, appropriate management cannot be carried out” was shared among all management.

This also applies to our initiatives regarding transfers. Until now, our transfers have had a "one-way ticket" aspect, and there have been cases where employees have been stationed at a single overseas base for more than 10 years without being informed of future plans. Such long-term and uncertain transfers make it difficult for employees to plan their lives.

At METALOR, it is customary to enter into contracts with a predetermined period when transferring or being assigned overseas. In Japan, we are considering introducing this system with a period of around 3 to 5 years.

Our goal is to create an environment in which each employee can take ownership of their own career and actively design their own life regardless of gender. As we increase the hiring of national staff overseas, it is essential to develop systems that are globally applicable. We believe that accelerating these initiatives will also help us maintain our competitiveness as a global company.

Important Points in Dialogue with Employees

Photograph by: Are Takagi

──Ms. Ishi has been taking the DEI education app “MASHING UP LEARN” provided by MASHING UP.

It was a good opportunity to learn about diversity in a comprehensive manner. Personally, I tend to prefer concentrating, so instead of the recommended style of “5 minutes a day,” I did it in one hour at a time. I thought the quiz-style approach was interesting and that it made the content easier to learn. On the other hand, there were times when I felt a gap between the program's responses and my own views. This may be a challenge unique to programs dealing with diversity.

I feel that taking "MASHING UP LEARN" has allowed me to objectively reflect on the current state of my company's DE&I initiatives. For example, when dealing with female employees who are raising children, I have sometimes asked women who applied for business trips whether they were okay to go on business trips, thinking that I was being considerate. However, I realized that this consideration itself is not always welcome. If we categorize people as "women raising children," we may overlook the fact that each person has a different balance between work and child-rearing. It is necessary for the company to develop a culture of not making decisions based on preconceived notions, but rather looking at each individual carefully and responding to them accordingly.​

──Finally, please tell us what you would like to prioritize and focus on going forward.

市石：That would be dialogue with employees. Through dialogue, we can understand the thoughts and circumstances of individual employees and reflect them in the company's management policies and measures, which should contribute to future growth.

The most significant realization from our ongoing dialogue is that we still do not fully understand our employees' thoughts and the realities of the company. This is a challenge for me personally, but I also recognize it as an important issue that management should address.​

In conversations, we do not interrupt or guide the other party. We also keep in mind not to disclose individual circumstances to ensure that the person speaking does not suffer any disadvantages. In the past, we have often been told that our "words are harsh," but I think we have been gradually improving in creating an atmosphere that makes it easier for employees to speak.

We aim to have diverse leaders in each group with milestones leading up to 2030 beyond dialogue.

Source: MASHING UP