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1 A More Diverse Workplace: Increasing Women’s Power In Japan

T H E L E A D E R S H I P C O M PA N Y ®

A MORE DIVERSE WORKPLACE Increasing Women’s Power in Japan Facilitated by Aya Iinuma and Christoffer Black


Heidrick & Struggles 2

Contents

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Executive Summary 03

The Background 05

Behind the Scenes: The economic background and causes 05

Japan vs the world: A comparative view 07

Heidrick & Struggles Research 09

Methodology 09

The respondent pool 10

Breaking through the glass ceiling 11

The Obstacles:

• The heavy burden of family obligations 12

• Work environment: a man’s world 15

• Women’s traditional mindsets 18

• Knowing how to make change happen 20

• Unappealing careers 21

Identifying Solutions 22

H&S Research: Shared and divergent views of men and women 22

Best Practices: firms that promote diversity 26

Summary: Critical Success Factors – H&S conclusions 31


EXECUTIVE SUMMARY

As Japan grapples with an aging population, labor shortages and increasingly fierce competition from neighboring economies, the country is turning its attention to a long-undervalued resource: women. Japanese women comprise more than 60% of the workforce. They are highly educated and most are motivated to climb to the top of the corporate ladder. Now the government is giving their ambition a vital boost - with a view to strengthening the country’s economy, prime minister Shinzo Abe has launched a plan to increase the number of women in the workplace. "We have set the goal of boosting women’s workforce participation from the current 68% to 73% by the year 2020," he wrote in September 2013.

But change will not come easy. While companies are finally showing signs of welcoming more women into the workplace, male-dominated middle management has been slow to recognize the need for change and is still unsure about how to encourage women in the workplace and remove the barriers to their career success. And while both men and women agree that it is essential to break the glass ceiling that is hindering women, they differ markedly in their opinions about what is stopping women from increasing their participation in the workforce and reaching the top.

1 Source: Wall Street Journal, Op Ed by Shinzo Abe, 25 September 2013


For their part, women are struggling against the constraints of a highly traditional environment to find a balance between the demands of high-level roles and a heavy burden of family obligations. Crucially, after long experience of being sidelined in the workplace, women – rightly or wrongly – believe that their professional competence is greatly undervalued by men and that they are excluded from the powerful male networks that dominate Japan’s corporate culture. Men recognize many of the problems faced by women, but rarely to the same extent.

Now, finally, the strong business case for finding a solution to the labor shortage means that a powerful impetus for change is on the agenda. For the first time in decades, Japan is encouraging frank and open debate about the obstacles to women’s participation in the workforce at senior levels and creating an environment for real change in workplaces to foster a mentality that will allow women to achieve their full potential alongside men in the upper echelons of management. This paper highlights the current status of women executives in Japan, reveals the obstacles they face, and recommends ways for foreign and Japanese companies in Japan to leverage this highly competent leadership resource.


THE BACKGROUND

"Women are Japan’s most underused resource." That’s according

to Japan’s Prime Minister Shinzo Abe. And the statistics back him

up – there are far too few female executives in Japan’s powerhouse

economy. 91% of companies have no women managers2, and where

they do exist, most are stuck at middle management level. Japan

is ranked 105 out of 135 countries in the World Economic Forum’s

Gender Gap Index 2013, and has slipped in the ranking every year

since 20063.

The Gender Gap Index is based on four pillars: (1) Economic

Participation and Opportunity (2) Educational Attainment, (3) Health

and Survival, and (4) Political Empowerment. While Japan has scores

high on the second and third pillars, (91st and 34th respectively),

indicating that the government is on the right track in two

fundamental indicators, it received disappointing scores on the first

(104th) and fourth (118th) pillars.

Since the passage of the Equal Employment Opportunity Law

in 1986, Japan has been making slow progress towards a more

diverse workplace. Company support for working mothers grew

throughout the 2000s, and since 2010 the value of women’s

contributions in the workplace have gained increased recognition

thanks to the overseas expansion of Japanese businesses and the

country’s search for talent.

BEHIND THE SCENES: THE ECONOMIC BACKGROUND AND CAUSES

2 Source: International Monetary Fund, Can Women Save Japan (and Asia Too)?, October 2012

3 Source: World Economic Forum, The Global Gender Gap Report 2013

Michiko Achilles, a Director of the NPO GEWEL and former Corporate Officer of Shiseido interviewed by H&S identifies

three key phases in Japan’s history of diversity:

1st phase: Started with the 1986 Equal Employment Opportunity Law. Talented women began entering companies

as sogoshoku – employees with management potential.

2nd phase: From 2000 onward: Greater corporate awareness of corporate social responsibility and

corporate image; implementation of new systems to support working mothers resulting in

good support infrastructure today in many Japanese companies.

3rd phase: From 2010 to date: Overseas expansion of Japanese businesses and concurrent recognition of

the need for diversity; women becoming strategically important.


Now, the government has upped the ante. Prime Minister Abe is

proposing to close the gender gap in the workplace to give the

economy an additional 8.2 million much-needed workers and

potentially increase GDP by 15%4. Falling under 'Abenomics'– a

collection of policy measures designed to improve the country’s

economy – these targeted efforts aim to create more female leaders

in companies and to increase the number of female managers to

30% by 20205.

The signs are positive that this is more than mere rhetoric. In 2013,

for the first time, the government published official statistics on

the number of women in leadership positions in the public sector,

government and private enterprises, and government ministries are

now placing record numbers of women in prefectural government

posts. Other government policies include encouraging corporations

to nominate at least one female executive to their board of directors

and offering tax incentives to companies to hire mothers.

Losses along the corporation pipeline in Japan (% of women)

4 Source: The Goldman Sachs Group, Inc., Japan: Portfolio Strategy Womenomics 3.0: The Time Is Now by Kathy Matsui, 1 October 2010

5 Source: Japan Today, Women in Business Summit offers tips for success, 20 June 2013

6 Source of graphic: McKinsey, Women Matter – An Asian Perspective

49UniversityGraduates

45Entry-level

professionals

11Middle-to-senior

management

1Executive

committee

<1CEO

2Board

Losses along the corporation pipeline in Japan (% of women)


Compared with other Asian nations, Japan’s female participation rate

is relatively high at 68%, higher than Hong Kong (52%), Singapore

(60%) or South Korea’s 55%.

But although it fares quite well in terms of general working

population, Japan falls far behind most of its regional competitors,

except for South Korea, when it comes to moving women up to

board and C-suite level.

Women make up only 2% of Japanese boards, compared with 9%

in Hong Kong and 7% in Singapore; and executive committees

have only 1% female representation, far below Hong Kong’s 11% and

Singapore’s 15%, and even falling below South Korea’s 2%7.

Japan’s prime minister has asked the country’s companies to promote

more women to senior roles, suggesting they appoint at least one

female board director in every company.

Below board level the picture is not much more encouraging: where

female managers do exist, many are stuck at lower, kacho (manager

or section head)-level. Few succeed in reaching the higher bucho

(department or division head) or shikko yakuin (corporate executive

officer) levels.

Japanese companies also fall behind their higher-performing

counterparts in making plans to implement diversity programs.

Just one-quarter of Japanese companies have put diversity on their

strategic agenda compared to South Korea, where twice the number

of companies are planning diversity programs. And while two-thirds

of South Korean companies are planning to accelerate their gender

diversity programs, Japan lags far behind at just under one-third.

JAPAN VS THE WORLD: A COMPARATIVE VIEW OF JAPAN’S FEMALE EXECUTIVES

7 Source: Mckinsey, Women Matter: An Asian Perspective, June 2012


Source 4: Plan for diversity programs in Asia PacificImportance of diversity on company's strategic agenda (% of those in

top 10)

Expect to accelerate gender diversity programmes

There are signs of change however. Opinion leaders interviewed

by Heidrick & Struggles see positive momentum now, driven by

pressure from government, Keidanren (Japanese Business Federation)

and Keizai Doyukai (The Japan Association of Corporate Executives)

among others, to slowly build a pipeline of female leaders in large

Japanese companies.

So here is the puzzle: With so many women in the Japanese

workforce, why do so few reach the top? Where is the glass ceiling

and how can women break through it? And what are the obstacles to

the government’s proposed diversity measures?

India MalaysiaTaiwan HongKong

Indonesia S. KoreaSingaporeJapan AustraliaChina

21% 23% 23% 25% 27%

48%

36% 37% 39%45%

IndiaMalaysiaTaiwanHongKong

Indonesia S. KoreaSingaporeJapan AustraliaChina

25%32% 35% 37% 41%

66%

42% 47% 48% 51%


Heidrick & Struggles' perspective as a global advisor on talent issues

with a long established presence both in broader Asia and in Japan

have enabled us, firstly, to recognize that structural problems are

hampering the advancement of Japanese women, and then to garner

the views of senior female – and male – leaders working in Japan to

pinpoint the impediments blocking women’s advancement to find

out how to remedy the problem.

The objective of our survey was to establish possible reasons for the

lack of women leaders in Japan and to suggest possible solutions.

To find out what Japanese women feel about the current workplace

situation and hear their views on what they think might improve

women’s representation at senior levels, Heidrick & Struggles

interviewed nine senior female executives who were asked qualitative

questions about their experiences and challenges at work.

We also conducted an online survey of women working for foreign

and local firms to compare their experiences. In addition, we asked

them about their ambitions to work in top management and

obstacles to promotion.

To gain a more balanced and broader perspective, we also asked

Country CEOs and other senior male executives about their support

for diversity, and their perceptions of women in the workplace and

the obstacles they face.

The survey was sent to 1,080 executives, 959 women and 121 men. The

response rate from women was 22% and from men 37%. The sample

of male executives is small and the results should therefore be treated

with caution.

HEIDRICK & STRUGGLES RESEARCHMETHODOLOGY


These varied sources of information from a substantial sample provide

more information on the reasons behind the lack of top female talent

and offer a valuable resource for enhancing women’s standing in the

Japanese workplace.

THE RESPONDENT POOL:

In top managementpositions:

44%82%

On executive committees:

41%67%

More than 15 years ofwork experience:

67% 60%

In top management positions:

28% 72%Total: 76

19% 91%Total: 107

On executive committees:

30% 73%Total: 102

More than 15 years of work experience:


The existence of a glass ceiling hampering Japanese women’s

professional progress is not in dispute - 84% of women in our survey

believe a glass ceiling exists, and 78% of men agree.

To break the glass ceiling it is important to understand how it got

there in the first place. The Japanese glass ceiling is composed

of multiple layers - family obligations, a male-dominated work

environment, a hesitancy in women about their professional

aspirations and competence, and a disconnect between recognizing

the need for change and achieving it.

Our survey findings highlight some of the key components that make

up this barrier to the advancement of female executives.

BREAKING THROUGH THE GLASS CEILING

KEY COMPONENTS THAT MAKE UP THE BARRIER OF FEMALE EXECUTIVES

Responses from Female Executives Responses from Male Executives

Women lack the necessary networking skills to besuccessful in integrating into male executives’ network

80%

10%10%

Agree

Disagree

Neither Agree NorDisagree

Women find it difficult to maintain a balancebetween family life & professional requirementsof top management positions.

51%26%

21%2%

51%

Agree

Disagree


Don’t Know/Can’t Say

Agree

Disagree



Women are less keen on changing their joblocations domestically and internationally

72%

20%

8%Agree

Disagree


There are not enough female role modelsand mentors within my company.

58%24%

16%2%


80%

10%10%

Agree

Disagree


Women find it difficult to maintain a balancebetween family life & professional requirementsof top management positions.

51%26%

21%2%

51%

Agree

Disagree



Agree

Disagree



Women are less keen on changing their joblocations domestically and internationally

72%

20%

8%Agree

Disagree


There are not enough female role modelsand mentors within my company.

58%24%

16%2%


Before they have children, about 70% of women work. Yet after

childbirth, only 30% return to the workforce.8 This is markedly different

from the US and Europe, where 50–60% of mothers return to work.

Our survey found that 80% of women find it difficult to maintain a

balance between family life and the professional requirements of top

management positions, and 51% of male respondents agreed with

them. The reasons include the burdens of housework and childcare, a

tradition of leaving work once married, and putting the man’s career

first.

Housework and ChildcareHousework and childcare are still traditionally seen as a woman’s

responsibility in Japan, and it is difficult for women to find help, not

least because of the social stigma that means women are often

judged harshly if they delegate their childcare or housework duties.

Those with young children who are prepared to suffer the stigma

face a dilemma – who will look after their children when they are at

the office, often for 15 hours a day? Japan has a notorious shortage

of public daycare options. Babysitters or au pairs are not commonly

accepted solutions in Japan. And even if there were sufficient

babysitters available, Japanese families do not generally like strangers

in their homes. That means that the live-in domestic help that is

widely available to their neighbors in Asia is not a feasible solution in

Japan. In Hong Kong and Singapore, working parents can employ a

maid for about USD 500 a month while in China this rate is about USD

3 an hour. Although childcare in Korea is more expensive, it is much

less costly than the average rate of about USD 15 per hour in Japan.

Asako Hoshino, Corporate Vice-President of Nissan, sees childcare as

a major reason that few women return to work after having children.

Women struggle to get access to childcare so they leave their jobs or

stay away from them for too long and then struggle to get back onto

the career ladder. In her view, childcare leave should be shorter (than

Obstacle A: The Heavy Burden of Family Obligations

8 Source: Facts and Details, 'Working Women in Japan: Low-status jobs, lack of opportunities, wasted education few female executives'


the current three years), but the company should be more flexible

and supportive of women who want to go back to work quickly.

Makiko Fukui, founder and President of Harmony Residence, a

specialist recruitment company focused on placing mid-career

women says she knows too many female doctors, lawyers and

accountants who leave work because of family obligations, which is

"a waste of talent". She believes that the key thing holding Japanese

women back is the burden of housework.

Data from Japan’s health ministry shows that 24,825 children

nationwide were denied day care in 2012. Tokyo led all areas by far

with 7,257 such cases. While there is certainly no shortage of private

nursery schools options in Tokyo, these can be very expensive,

sometimes costing around 100,000 yen (approx. $1,075) a month to

have two children in daycare.

If families are lucky enough to get their children into daycare, another

conundrum arises. Most daycare centers close by 7pm, so one parent

needs to leave work early to collect the children and take them home.

In a country where employees are usually expected to work very

long hours, such ‘absenteeism’ on a regular basis can negatively affect

promotion prospects.

Social PressureMichiko Achilles of GEWEL says that although the younger generation

tends to think differently about issues concerning household

management and family duties, some things haven’t changed: 70%

of women still leave their jobs when they have their first child9. Later,

they may return to work part-time. In her view, the lack of childcare

options and difficulties in finding household help are only part of the

problem. The availability of more domestic helpers would certainly be

helpful, but at the same in Japan there is social pressure for women to

do housework.

9 Source: Goldman Sachs, Womenomics 3 – The Time is Now, 1 October 2010


Follow That ManMitsuru Claire Chino, Executive Officer and General Manager of Legal

at ITOCHU Corporation, says that she also sees a lot of women who

leave work once they get married. It is not necessarily because they

want to, but because their husbands are often transferred to several

different locations during the early years of their career, which is

typical in Japanese companies. That makes it almost impossible for

women to maintain their own career.


In Japan’s workplace culture, the top positions are traditionally and

overwhelmingly held by men, who are in turn more likely to promote

men than women. This situation is a fundamental obstacle to change.

Unconscious BiasA senior female leader interviewed by Heidrick & Struggles says social

norms and unconscious bias play a big part in the lack of career

progression for women. Managers’ unconscious bias affects decisions

about whom to delegate to and which assignments to give, with

women often second choice to men.

The intentions are sometimes good; with male managers giving

less challenging jobs to female subordinates (e.g. working mothers)

thinking they are being considerate, but not realizing this will limit

their growth potential.

Women’s promotion prospects also suffer because of a failure to

receive as much constructive criticism as male colleagues receive.

Some men fail to give constructive criticism or feedback to female

subordinates because they are afraid of making them cry, says the

senior executive. From the beginning of their career, because of the

assignments they are given and through lack of feedback, women

employees in this way get less opportunity to be challenged and

grow. She therefore suggests that companies need to take action

to raise awareness of this bias, and one way to do this is to require

managers to find and develop women they can promote.

This deep-rooted bias makes male managers blinkered in how

they treat women. Another woman leader says men often fail to

see women as peers or important members of the team. Instead,

they perceive only risk factors: that women will take a long leave of

absence if they have children.

Several female leaders interviewed by Heidrick & Struggles felt that

male managers are often not equipped to manage female executives.

Female executives tend to question more, whereas men are more

Obstacle B: Work Environment – A Man’s World


likely to accept orders, suggests Michiko Achilles. To address this

problem, setting top-down numerical targets for developing women

managers, combined with training for male managers might work.

Corporate CultureIn Japan’s relationship driven corporate world the power networks

are still predominantly male. While the previously almost constant

nights of drinking and socializing with bosses and colleagues are

reputedly easing, many important deals are signed on the golf

course or during late-night corporate drinking sessions (so-called

‘nominication’). Women are often left out of such activities because of

their commitments at home or simply because these are considered

male-only activities.

Women feel excluded from these networks by lack of networking

skills, but men do not agree. 58% of women we surveyed feel

that they lack the necessary networking skills to be successful in

integrating into male executives’ networks. Only 24% men agreed

with this statement, with 49% responding that women have the

necessary skills to integrate into male executives’ networks.

Another aspect is the lack of performance based evaluation systems

in Japanese companies, which historically have focused more on long

term commitment and hours spent at work, rather than outcomes

and efficiency.

Companies increasingly have the technology to allow employees to

work more flexibly including remotely, but there are cultural barriers,

notably an ingrained culture of face time, says Janelle Sasaki, Inclusion

& Diversity leader of Cisco Japan.

The core issue to which everything else is secondary is changing the

evaluation systems in Japanese businesses, which should be focused

on output, says Yoko Ishikura, professor at Keio University and non-

executive director of Nissin Foods. Opinion leaders interviewed by

Heidrick & Struggles say that the face time model should be changed


to a model that focuses instead on flexibility and efficiency.

Japan’s traditional gender roles are entrenched in the business

culture, and clearly exclude women from vital discussions and

networks. Serious consideration needs to be given to finding new and

inclusive official business channels.


10 Source: Wall Street Journal , Japan Investors: Why No Women, Foreigners in the Boardroom?, 30 June 2010

In many cases, women do not put themselves forward for leadership

roles.

While most women (57%) who responded to the survey aspire to

reach top management, more than half of both women (67%) and

men (51%) believe that women are less ambitious about their careers

and less assertive when it comes to contending for top management

positions.

Investors raised the issue with leaders at Toshiba Corp., asking why the

major electronics maker did not have any female executive officers.

"We are not discriminating at all," a Toshiba executive said in

response to the question. "It’s just that we haven’t found appropriate

candidates. We expect to have female executives in near future."10

There are obstacles on the women’s side, says Misa Yamashita, General

Manager of Human Resources for Asia Pacific at GE Healthcare: "(1)

mindset - they don't seek promotion; (2) their perception that it is

hard to be in a senior role; (3) their preoccupation with family and

work-life balance."

Obstacle C: Women’s Traditional Mindsets

49%

35%

16%

0%

I aspire to reaching topmanagement in my currentcompany.

43%57%

No Yes

If No, which statementbest describes the reason:

Because of workculture a top

management role isnot desirable to me

I doubt mycapability to take a leadership position

A top managementrole would require

me to sacrificefamily life

I need to stayflexible because of

my husband’scareer

Base: 209


Traditionally accepted rules of behavior for Japanese women are

another facet of the problem. One specific issue for female Japanese

executives is the limited range of socially acceptable female behavior,

according to one senior woman leader. The male range is broad and

can go quite far to the "tough" even aggressive end of the spectrum,

whereas women have a narrower range of what is accepted. This

range is internalized and women need to understand how they come

across and how that determines how they are treated.

Just as male executives need to be better equipped to manage

female employees, senior executives we interviewed suggested

there is scope for women to learn from men, and improve their

communication skills.


Women have clear ideas about what is stopping them from reaching

the top and what needs to change to help them get there. But

fundamental change in the Japanese workplace is not yet apparent.

There is a disconnect between recognition of the need to promote

women, and the know-how to make the changes, with a blockage

apparent at the male dominated middle-management level.

While the concept of diversity is well understood, many Japanese

companies are struggling with change. One senior female executive

interviewed by Heidrick & Struggles commented that many large

Japanese companies have no pipeline of female talent and no culture

to promote women. Small companies are faster to adopt; for them

diversity is a matter of remaining competitive, of surviving. The big

companies are the bottleneck.

Christina Ahmadjian, Professor at Hitotsubashi University and Non-

Executive Director of Mitsubishi Heavy Industries says that there

has been a big change in mindset at the top, and a recognition

of the need for female leaders. "In the boardroom, there is a sense

that if we don’t hire/develop women, then there is no future. The

leadership gets it, but maybe don’t know what to do. And the middle

management levels are a barrier – they are not equipped to manage

or promote women."

Japanese companies’ efforts tend to be bottom-up, such as creating

a more friendly work environment for women. But such efforts

don’t necessarily lead to developing high-potential next generation

female leaders. In addition to bottom-up initiatives, a top-down

approach (backed up by strong commitment from the CEO and

senior leadership team) should also be there to accelerate the female

leadership development/pipeline development, says Misa Yamashita

of GE Healthcare.

Obstacle D: Knowing how to make change happen


In a tight labor market, an attractive career path becomes an

important tool in encouraging people to commit to a career with the

company. For women in Japan, that career path often looks far from

appealing.

Nearly two-thirds of women (63%) say that they quit their job because

their career was not satisfying, and 49% left because they felt stymied

and stalled.

"When companies are flexible and women can see their career path,

women find a way to have career and family," says one female leader.

"They give up when their career isn’t interesting." Several opinion

leaders we interviewed echoed this sentiment.

Japan’s working environment is not very attractive, says Christina

Ahmadjian. "People have little control of their careers, and are

expected to work long hours."

Another woman leader thinks it is important to help women visualize

their careers, but says that for Japanese women, the entrenched

tradition of overlooking women for promotion in favor of men adds

to the lack of workplace appeal.

"For a long time, Japanese companies kept hiring men for their core

businesses and women only for supplementary roles, and those

separate schemes have resulted in a huge discrepancy in their

positions within the company," Satsuki Ichiroku, an official at the

Japanese labor ministry’s equal employment, children and families

bureau, told The Wall Street Journal. Such schemes have changed

somewhat under equal employment law revisions since the 1980s.

But "it takes more than the law to fill the gap created by the old

system and mentality," she said11.

Obstacle E: Unappealing Careers

11 Source : Wall Street Journal, Japan Investors: Why No Women, Foreigners in the Boardroom?, 30 June 2013


IDENTIFYING SOLUTIONS

Our research revealed areas where men and women’s views diverge

on how to smooth the path to women’s career progression, and other

areas where they agree.

Diverging Views of Men and WomenWomen and men agree that it’s hard for women to balance family

and high-level work commitments, however while women (80%) see

this as the single biggest impediment to their career progress men

(51%) see it as much less relevant.

Japanese women have a marked tendency to lack faith in their

professional abilities, perhaps because of entrenched views of women

as being secondary to men. Women see themselves as lacking the

networking skills that are key to success in the Japanese workplace,

while most men do not agree. Perhaps most noteworthy is that

women perceive men as having less faith in women’s competence

(59% of women believe this), while just 9% of men actually see

women that way. The first barrier women may need to break through

is their own negative perceptions of their professional value.

Men are less willing to see progress on gender diversity become an

integral part of performance evaluations, but women believe this is

very important to making changes.

Shared Views of Men and WomenMost notably, both men and women agree that a glass ceiling exists,

and more than 60% of respondents to Heidrick & Struggles' survey,

both women and men, agree on steps that will help women move to

senior positions.

• Workplace services and support will help women to balance their

work with their family obligations, agree 76% of women and 78%

of men.

• The C-Suite needs to get involved. Three-quarters (76%) of

women want to see the C-suite taking an active and visible


interest in gender diversity, and most men – who comprise most

of the C-suite – agree (62%).

• Companies can help by setting up in-house programs to hire,

retain, promote and develop women, agree 67% of women and

60% of men.

• Flexible working conditions and/or locations would benefit

women’s career paths, according to 64% of women and 67% of

men.

• A hands-on approach such as senior executives mentoring junior

women would help to encourage women agree 64% of women

and men.

• Women’s networks and female role models can help women

envisage a career path, and 62% of women and 60% of men

would like to see them happen.

Government measures: What’s in the pipelineThe Japanese government wants women to make up 30% of

workplace leaders in Japan by 2020, and is encouraging more family-

friendly workplaces to this end. These include a promise made in April

2013 by Prime Minister Abe to eliminate current childcare waiting lists

by creating thousands of new daycare openings. He also plans to

extend childcare leave for mothers.

The Child-rearing and Nursing Care Law from the 1990s could be

further enforced, encouraging all mothers with young children to take

extra leave and work shorter hours. Women could also have more say

in government policy through the Headquarters for the Promotion

of Gender Equality, which was set up in the cabinet in 1994. The

Gender Equality Bureau is another forum for women to push for legal

changes.


The Private SectorIt is clear from our research that the way that men view women needs

to shift. In addition to having a drive to encourage the transparent

discussion of business issues within working hours, work should be

allocated according to competency rather than gender. Training can

help to overcome this unconscious bias against women.

Companies should either provide daycare facilities on their premises

or give women subsidies for daycare. Companies could also offer

more childcare leave – according to the Child and Family Care Leave

Law revised in 1995, employees can care for a child or close relative

for a specified time and still be guaranteed of their job. However, this

needs to be enforced without these women being discriminated

against.

Organizations should better enforce the revised 1999 Equal

Employment Opportunities Law to ensure fairness in hiring and

promotion.

By introducing flexible working hours for all employees, male and

female, companies can alleviate the burden on women and ultimately

improve their productivity.

Civil SocietyOrganizations that address gender issues and provide positive role

models for future senior executives include the following:

The Global Enhancement of Women’s Executive Leadership (GEWEL),

established in 2003, which promotes women leaders by working with

companies, providing networking and mentoring opportunities for

female executives and also supporting women entrepreneurs.

New Japan Women’s Association (NJWA or Shinfujin), which was

established more than 50 years ago and focuses on creating equality

and achieving equal rights for its more than 150,000 members.


J-Win was established in 2007 with the objective to promote

diversity as a business strategy. The organization works closely with

corporations as well as the government, and has established two

programs to support member companies in the development and

encouragement of female leaders.

These organizations have the platform and capabilities to provide

mentoring opportunities, develop and nurture the pipeline of future

female leaders, lobby organizations to embrace gender diversity,

communicate the importance of gender diversity to the public, and

act as a conduit to share practices from outside Japan.


Not all companies in Japan are failing to empower women

employees. IBM Japan, Nissan and Shiseido are some of the bright

spots with inspiring stories to share.

IBM Japan’s experience is a reminiscent of the challenges facing the

entire Japanese economy. When the company’s business began to

decline in 1998, IBM Japan realized that only 1.8% of its managers in

Japan were women, and it began to focus on building diversity to

resolve its business weakness.

The company found that many women were resigning for three

main reasons: the lack of female role models, the struggle to achieve

a work-life balance, and the impossibility of breaking through the

brotherhood of male colleagues. In response, IBM set up a five-

year career plan for women and built networks for them. It allowed

women to work from home, provided mentors for them and set up

an organization to support women across Japan.12

The measures paid off. In 2013, IBM Japan was ranked number 1 in

Nikkei Woman’s “Survey on Female Workers’ Workplace Opportunities”,

based on measures including the quality of work-life balance the

company provides and number of female managers.13

Nissan also came to diversity through the business route. After

realizing that women influence two-thirds of car purchase decisions,

it decided to increase the involvement and potential of women in

all aspects of the company. It provides career advisors specifically for

women, highlights female role models through networking events,

offers flexible working hours and extended parental leave, and has

also reduced overtime and adapted its facilities and equipment to

be more female-friendly. It promotes working from home one day

a week, and the lights now go out at 8pm, encouraging shorter

working days than before. Although the percentage of female leaders

BEST PRACTICES: FIRMS THAT PROMOTE DIVERSITY

12 Source: University of Tokyo, ‘Strategic Contribution of Gender Equality and Diversity in a Company’, FEMC Journal No. 6, 2012.3, Mizuno Yukari,

Tohoku University, ISS

13 Source: Nikkei BP, ‘Nikkei Woman announces Female Workers’ Workplace Opportunity Rankings: IBM Tops in the Overall Best 100 Companies', 8

April 2013


in the company remains low, the numbers of female managers has

doubled since 2004.14

Because of the changes at Nissan, Asako Hoshino thinks talented

women are now at an advantage because they get additional training

and mentoring. The company is also working to build its female

pipeline, hiring equal numbers of men and women at entry level.

As part of the company’s diversity plan Shiseido Japan set out an aim

to have 30% female managers in the organization by October 2013,

in an effort to close the gap with Shiseido’s overseas branches where

60% of managers are female. To meet the goal, it has introduced

a range of women-friendly measures, including holding forums to

promote career advancement, enhanced management training for

female staff, and funding the work of exceptional female researchers.

To ease the burden on working parents, Shiseido has updated its

policies in alignment with new laws to allow women with younger

children to work shorter days, providing subsidies to cover the cost of

daycare, setting a limit to the number of overtime hours women can

work, and offering paternity leave. The company has also opened a

daycare facility in Tokyo, to allow parents to be near their children and

is attempting to improve employees' work-life balance with a 'lights

off by 10pm' policy to discourage excessive overtime.15

The lessons to be learnt from these companies are clear. To be

effective, diversity needs to be based on more than rhetoric, and

companies have a variety of proven options at their disposal.

Women at work in Japan need a combination of both practical and

professional measures. Flexible working hours and shorter working

days give them the flexibility they need to balance family and work

commitments. Financial help can ease the burden of childcare.

14 Source: Catalyst, Nissan Motor Co., Ltd – Women in the Driver’s Seat: Gender Diversity as a Lever in Japan, 30 January 2008

15 Source: Shiseido, Respect Diversity


Company wide lights-out policies and paternal leave increase family

time for both parents.

On a professional level, women also need access to skills training,

mentoring and role models to encourage their vision of a career path,

and networking that is accessible to women so that they can build

their profile and professional knowledge within the company.

Yoko Ishikura of Keio University, is positive about the likelihood of

change. She says real momentum for action is coming from a variety

of sources: pressure from the IMF and World Economic Forum, the

Abe government setting a clear numerical target, and the Tokyo Stock

Exchange pushing for disclosure for listed companies.


During our focus group interviews, female leaders were very keen

to share their experience with Japanese women executives. Having

surmounted many of the same obstacles themselves, they hope their

advice will help other women achieve their goals.

Building leadership abilityRoyanne Doi, Corporate Chief Ethics Officer of Prudential Financial

believes that female executives should build their confidence and aim

to take a leadership role. "Getting involved in outside organizations

in a leadership role is the best way to develop one’s soft skills," she

noted. "Volunteer for one organization of personal interest and be a

leader there, make mistakes and learn, develop your leadership style,

then get involved in an organization within your industry. In time, you

will grow your leadership capability and your network."

Overcoming mindset obstacles and focusing on self-developmentBuilding confidence comes with building skills. "Invest in yourself,

especially during the 35-45 age range," says Doi. Focus on learning

specific skills, such as presentation skills, advises Janelle Sasaki of

Cisco. "Develop your own brand," she says. Be up front with your

manager, and be open about what you are finding difficult, says

Christina Ahmadjian of Hitotsubashi. "Ask for advice and support, and

talk about your problems," she says. Being too hard on yourself and

trying to achieve perfection won’t help, advises Michiko Achilles of

GEWEL. Instead, focus on getting practical help at home and at work,

and be honest about who you are and what you want. "Rather than

being frustrated, see it as a learning experience and enjoy it," she says.

NetworkingTake a bigger perspective on building networks, advises Asako

Hoshino of Nissan. "Go global," she suggests. Don’t just focus on your

peer group, says Christina Ahmadjian. "Know lots of people, older and

younger," she advises. And look at networking opportunities outside

the workplace. "Some women have a tendency to shy away from

institutional networking. Smart women have both internal and strong

Advice to women executives from opinion leaders


external networks," says Royanne Doi.

Taking ActionAim to develop international experience, great communication skills

and take steps to promote yourself. "Global experience is essential

to differentiate yourself to become a leader, and self-marketing

is important," says Asako Hoshino. As you rise through the ranks,

focus more on soft skills rather than hard skills. Communication,

knowing how to speak to (older) men, is valuable, says Christina

Ahmadjian. And don’t be afraid to break with traditions at home, says

Makiko Fukui. She is therefore advocating greater acceptance of the

outsourcing of housework and childcare.


From listening to the views of women, men, companies and

governments, we see the following factors as crucial to achieving real

change for Japan’s working women.

Men and women agree on some crucial issues, such as the existence

of a glass ceiling, but on the practical impediments to women’s

participation at senior levels, such as networking and the burden

of childcare, men tend to underestimate the difficulties faced by

women. More frank discussion is needed to share experiences and

propose workable solutions to these problems.

The Japanese government is moving in the right direction, both from

a policy perspective and by supporting the debate, explaining the

need for change and proposing how companies can achieve real

diversity. It now needs to provide more detailed guidance and case

studies about how to implement meaningful diversity in companies

that understand the need for change, but need help to make it

happen.

Japan’s labor shortage is acute and growing, and the business case is

clear for encouraging women to stay in the workplace and helping

them achieve equal career prospects. Governments, companies,

NGOs, male managers, but also women themselves need to recognize

their shared responsibility. By working together, the diversity goal will

be achieved faster and more smoothly.

As well as opportunities and skills training, women need role models

and mentors. Networking events that promote women leaders and

mentoring programs both within companies and in professional

associations can help women fast-track their careers by offering

relevant role models and advice from experienced managers – male

or female.

Our research shows that the likelihood of achieving real diversity in

Japan is high. Both men and women understand the need and have

a positive attitude towards women’s abilities. There are powerful

SUMMARY: CRITICAL SUCCESS FACTORS IN MOVING FORWARD


women leaders in Japanese companies who can provide a wealth

of advice, experience and encouragement. Japanese companies are

willing to change and lack only the expertise to bring about changes

to their practices. Some of the country’s most successful companies

are already leading the way. Government measures and efforts to

bring these best practices to the fore will give this project the final

impetus it needs to bring these strands together. At Heidrick &

Struggles, we look forward to being part of the solution.


SPECIAL THANKS TO:

Michiko Achilles

Director, GEWEL

Christina Ahmadjian

Professor, Graduate School of Commerce and Management,

Hitotsubashi University

Claire Mitsuru Chino

Executive Officer and General Manager, Legal, ITOCHU Corporation

Royanne Doi

Corporate Chief Ethics Officer, Prudential Financial

Makiko Fukui

President, Harmony Residence Inc.

Asako Hoshino

Corporate Vice President, Nissan Motor Co.

Yoko Ishikura

Professor, Keio University Graduate School of Media Design

Janelle Sasaki

Inclusion & Diversity Leader, Cisco Systems Japan

Misa Yamashita

General Manager, Human Resources, GE Healthcare Asia Pacific

Note: The titles of the leaders reflected on this page indicate their roles as at the end of 2013 when we completed the interviews.


APPENDIX

17%1%

15%67%

RESPONSES FROM FEMALE EXECUTIVES

49%

35%

16%

0%

I aspire to reaching topmanagement in my currentcompany.

43%57%

No Yes

If No, which statementbest describes the reason:

Because of workculture a top

management role isnot desirable to me

I doubt mycapability to take a leadership position

A top managementrole would require

me to sacrificefamily life

I need to stayflexible because of

my husband’scareer

8%6%84%

2%

There exists a glass ceiling orinvisible barrier for women inJapan when it comes to upwardadvancement.

There is a lack of professionaltraining and education forwomen.

32%

21%

45%

2%

There is less faith in the profes-sional competence of women

Women are less assertive when itcomes to contending for topmanagement positions

24%

16%60%

Women are less ambitious abouttheir careers

Women prefer jobs that requiresless travel (such as in Sales) andthis may affect their prospects

36%

22%

40%

2%

Agree Disagree Neither Agree Nor Disagree Don't Know/Can’t Say

59%14%

26%1%


24%

16%

2%

58%

Base: 209

Women find it difficult to maintaina balance between family life &professional requirements of topmanagement positions.

Women lack the necessa rynetworking skills to be successfulin integrating into maleexecutives’ network

Women are less keen onchanging their job locationsdomestically and internationally

There are not enough female rolemodels and mentors within mycompany.

10%

10%80%

26%

21%

51%

2%

20%

8%

72%



4%1%

11%84%

RESPONSES FROM MALE EXECUTIVES

I think my company is successfulat promoting diversity in theworkplace.

Implementing diversity ispractically not easy.

I am a sponsor of diversity in mycompany.

16%

22%62%

38%

20%

42%

38%

22%

40%

Promoting diversity in mybusiness will help drive results inthe short term.


Better representation of femaleexecutives at all levels would begood for the business.

9%

40%51% 11%

9%

78%2%


I have less faith in the profes-sional competence of my femalethan male subordinates.

Women are less assertive when itcomes to contending for topmanagement positions.

38%

29%

31%

2% 58%

31%

9%2% 33%

18%

47%

2%

31%

16%

51%

2%

Women are less ambitious abouttheir careers.


4%1%

11%84%

RESPONSES FROM MALE EXECUTIVES

I think my company is successfulat promoting diversity in theworkplace.

Implementing diversity ispractically not easy.

I am a sponsor of diversity in mycompany.

16%

22%62%

38%

20%

42%

38%

22%

40%

Promoting diversity in mybusiness will help drive results inthe short term.


Better representation of femaleexecutives at all levels would begood for the business.

9%

40%51% 11%

9%

78%2%


I have less faith in the profes-sional competence of my femalethan male subordinates.

Women are less assertive when itcomes to contending for topmanagement positions.

38%

29%

31%

2% 58%

31%

9%2% 33%

18%

47%

2%

31%

16%

51%

2%

Women are less ambitious abouttheir careers.



22%

24%

51%

3%

31%

33%

33%

3%

Women prefer jobs that requireless travel (such as in Sales) andthis may affect their prospects.

Women find it difficult tomaintain a balance betweenfamily life and professionalrequirements of top manage-ment positions.

Women lack the necessa rynetworking skills to be successfulin integrating into male execu-tives’ network

49%

27%24%


Base: 45


COMPARISON OF RESPONSES FROM MALE AND FEMALE EXECUTIVES

33%

31%

24%

9%

47%

51%

51%

78%

40%

45%

58%

59%

60%

67%

80%

84%

0% 20% 40% 60%

Responses from Female Executives (base 209) Responses from Male Executives (base 45)

80% 100%

There exists a glass ceiling or invisible barrier forwomen in Japan when it comes to upward advancement

Women find it difficult to maintain a balance betweenfamily life & professional requirements of top manage-

ment positions

Women are less ambitious about their careers

Women are less assertive when it comes to contendingfor top management positions

There is less faith in the professional competence ofwomen


There is a lack of professional training and education forwomen

Women prefer jobs that require less travel (such as inSales) and this may affect their prospects

The chart below shows the agreement scores for the corresponding statements



16%

19%

64%

1%

Flexible working conditions and/or locations willencourage women to further their career in theircurrent company.

Support services and facilities at work to helpwomen balance work and family life will encouragethem to further their career in their currentcompany.

11%

11%76%

2%


2%

29%

67%

2%


7%

13%78%

2%

Company in-house programs to hire, retain,promote and develop will help women to move tosenior positions.

15%

17%

67%

1%


20%

20%

60%


DIVERSITY PROGRAMS : NEED FOR A CHANGE IN JAPAN


Encouragement or mandates for senior executivesto mentor junior women will help women to moveto senior positions.

Visible monitoring by CEO and executive team ofprogress made in gender diversity programs willhelp women move to senior positions.




16%

19%

64%

1%

10%

15%76%

9%

27%64%

9%

27%62%

2%

Base: 209 Base: 45




Gender quotas will help women to move to seniorpositions.

38%

18%

43%

1%

Gender quotas will help women to move to seniorpositions.

53%

13%

1%

33%


Programs to encourage female networking androle models will help women move to seniorpositions.

19%

17%

62%

2%

Programs to encourage female networking androle models will help women move to seniorpositions.

20%

2%

18%

60%

Skill-building programs aimed at women will helpthem move to senior positions.

33%

17%

50%

Skill-building programs aimed at women will helpthem move to senior positions.

24%

5%

20%

51%


Responses from Female Executives Responses from Male ExecutivesResponses from Female Executives Responses from Male Executives

16%

19%

64%

1%



11%

11%76%

2%


2%

29%

67%

2%


7%

13%78%

2%


15%

17%

67%

1%


20%

20%

60%







16%

19%

64%

1%

9%

15%76%

9%

27%64%

9%

27%62%

2%


Responses from Female Executives Responses from Male ExecutivesResponses from Female Executives Responses from Male Executives

16%

19%

64%

1%



11%

11%76%

2%


2%

29%

67%

2%


7%

13%78%

2%


15%

17%

67%

1%


20%

20%

60%


Inclusion of gender diversity indicators in topexecutives’ performance reviews will help womenmove to senior positions.

Company hiring criteria requiring at least onefemale candidate in each promotion pool will helpwomen move to senior positions.

Inclusion of gender diversity indicators in topexecutives’ performance reviews will help womenmove to senior positions.

Company hiring criteria requiring at least onefemale candidate in each promotion pool will helpwomen move to senior positions.


14%

21%

65%16%

33%

49%

2%

23%

22%

55% 42%

18%

36%

4%

Base: 209 Base: 45


% Japan women's choice of diversity programmes

Source: Heidrick & Struggles, A More Diverse WorkplaceIncreasing Women's Power In Japan

% Asia Pacific women's choice of diversity programmes

Source: Women Matter An Asian Perspective - Mckinsey & Company 2012(235 companies 1768 web - based survey)

Visible monitoring by CEO and executive team ofprogress made in gender diversity programs will help

women move to senior positions

Support services and facilities at work to help me balancework and family life will encourage me to further my

career at my current company

Company in-house programs to hire, retain, promote anddevelop will help women to move to senior positions

Inclusion of gender diversity indicators in top executives’performance reviews will help women move to senior

positions

Encouragement or mandates for senior executives tomentor junior women will help women to move to

senior positions

Flexible working conditions and/or locations willencourage me to further my career at my current

company

Programs to encourage female networking and rolemodels will help women move to senior positions

Skill-building programs aimed at women will help themmove to senior positions

Gender quotas will help women to move to seniorpositions

Company hiring criteria that at least one femalecandidate must be in each promotion pool for senior

positions will see more women moving into seniorpositions

43%12%

50%17%

55%13%

62%25%

64%32%

64%17%

65%10%

67%17%

76%28%

15%76%

DIVERSITY PROGRAMS PREFERRED BY JAPANESE WOMEN EXECUTIVES


DEMOGRAPHICS : FEMALE RESPONDENTS

Company is headquartered in Age Group

Base: 209 for all the statements

Marital Status Children

24%76% Japan

It’s a foreign multinational6%

12%

22%

27%

21% 12% 41 - 45

46 - 50

51 - 55

More than 55

Less than 35

36 - 40

Married

Single

No Children

Yes, Two

Yes, Three or more

Yes, One43%57% 60%

24%

14%

1%

More than 15 years

Other

MBA

Highest qualification Number of years workexperience

Member of company’s executivecommittee

3%14%

21%

58%

4%Graduate

Post Graduate

Doctorate/PHD

No

Yes

Less than 5 years

6 to 10 years

11 to 15 years

9%

10%

14%

67%41%

59%

Broad function area that describes your role :

22%

2%

4%

8%

14%

21%

21%

5%

1%

Others

Technology

Legal

Finance

Marketing

Human Resources

General Management (includes BU head)

CEO (includes divisional)

Board Member

0% 5% 10% 15% 20% 25%

Number of years currently away from moving into a top management position in the company :

27%5%

6%1%

7%10%

Not sure

1 - 2 years

2.1 - 3 years

3.1 - 4 years

4.1 - 5 years

More than 5 years

0% 10% 20% 30%


DEMOGRAPHICS : FEMALE RESPONDENTS

Company is headquartered in Age Group



24%76% Japan

It’s a foreign multinational6%

12%

22%

27%

21% 12% 41 - 45

46 - 50

51 - 55

More than 55

Less than 35

36 - 40

Married

Single

No Children

Yes, Two

Yes, Three or more

Yes, One43%57% 60%

24%

14%

1%

36 - 40

Less than 35

More than 55

51 - 55

Base: 209

46 - 50

Company is Headquartered in Age Group


24%76% Japan

Foreign multinational6%

12%

22%

27%

21% 12%

41 - 45

Married

Single

No Children

Yes, Two

Yes, Three or more

Don't Know/Can’t Say

Yes, One43%57%

60%24%

14%1%1%


DEMOGRAPHICS : MALE RESPONDENTS




Japan

It’s a foreign multinational

41 - 45

46 - 50

51 - 55

More than 55

Married

Single

No Children

Yes, Two

Yes, Three or more

Yes, One

20%

80%11%

27%22%

40%

13%

87%

11%33%

40%

16%

2%20%

4%71%

2%1%

No

YesMore than 15 years

Highest qualification Number of years workexperience

Member of company’s executivecommittee

Other


Post Graduate

Graduate

MBA

Doctorate/PHD

Less than 5 years

6 to 10 years

Broad function area that describes your role :

Number of years currently away from moving into a top management position in the company :

0%4%

2%

2%

9%

82%

1 - 2 years

2.1 - 3 years

3.1 - 4 years

4.1 - 5 years

More than 5 years

Already in a top management position

29%

11%

60%67%

33%

11%

4%

18%36%

31%

Others

Marketing

Human Resources

CEO (includes divisional)

General Management (includes BU head

0% 5% 10% 15% 20% 25% 30% 35% 40%

0% 50% 100%


DEMOGRAPHICS : MALE RESPONDENTS




Japan


41 - 45

46 - 50

51 - 55

More than 55

Married

Single

No Children

Yes, Two

Yes, Three or more

Yes, One

20%

80%11%

27%22%

40%

13%

87%

11%33%

40%

16%

Base: 45



Japan


41 - 45

46 - 50

51 - 55

More than 55

Married

Single

No Children

Yes, Two

Yes, Three or more

Yes, One

20%

80%11%

27%22%

40%

13%

87%

11%33%

40%

16%


About the Authors

Aya Iinuma

Aya Iinuma is partner-in-charge of Heidrick & Struggles Tokyo, and leads the Financial Services; Professional Services and Legal, Risk, Compliance & Government Affairs practices in Japan, recruiting senior leadership and attorneys for both in-house and private firms. She has more than 10 years’ experience in the search industry and has worked extensively on financial services infrastructure assignments with emphasis on the compliance, legal, audit, risk, finance, operations and IT sectors. Aya has spent the past seven years at Heidrick & Struggles, serving clients in her specialist areas, frequently working on cross-border assignments. She has also been advocating gender diversity by managing a variety of related initiatives.

Prior to joining Heidrick & Struggles, Aya completed numerous senior-level search assignments with a Tokyo-based boutique executive search firm. Her career began with Mizuho Trust & Banking, where she worked for 12 years in the areas of corporate finance, distressed assets, and marketing and business planning. Aya is a graduate of Tsuda College. She can be reached at +81 3 4520 7808 or [email protected]

Christoffer Black

Christoffer Black is an associate principal in Heidrick & Struggles’ Tokyo office and leads the firm’s Financial Officers Practice in Japan. He joined the firm in London as a member of the Private Equity Practice before relocating to Asia. Christoffer focuses on leadership searches for private equity and other financial services clients.

Prior to joining Heidrick & Struggles, Christoffer was a consultant with a leading European private equity-focused advisory firm, specialized in evaluating and recruiting leadership teams for private equity and venture capital-backed businesses. Prior to that, he was responsible for strategy and business development at a privately held group of recruitment businesses, where he managed the creation of a primary research unit serving institutional, hedge fund and private equity investors. He began his career with The Bank of New York.

Christoffer received his MBA from the University of Cambridge and his bachelor's degree from University College London. He can be reached at +81 3 4520 7834 or [email protected]




About Heidrick & Struggles International, Inc.

Heidrick & Struggles International, Inc. (NASDAQ: HSII) is the premier provider of senior-level Executive Search, Culture Shaping and Leadership Consulting services.

For 60 years, we have focused on quality service and built strong leadership teams through our relationships with clients and individuals worldwide. Today, Heidrick & Struggles’ leadership experts operate from principal business centers in North America, Latin America, Europe and Asia Pacific. For more information about Heidrick & Struggles, please visit www.heidrick.com

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