Yasuyuki HIGUCHI (President, Microsoft Japan)

Meeting unique classmates and upperclassmen

Born in Hyogo Prefecture and raised in Nara, Mr. Higuchi naturally entered the School of Engineering as most of his relatives were science-oriented individuals. “I didn’t do much in the way of studying,” said a humble Mr. Higuchi, but one of his classmates commented, “I never thought he would become the president of such a huge company, but he was smart and had planning and leadership skills.”

He was able to interact with students from other universities through the light music club to create a large network. He was inspired by his motivated upperclassmen and met a lot of interesting individuals, which became valuable acquaintances later in life. “On the other hand, there were some students who simply went back and forth between school and home, and I didn’t want to be like that. This may be a tad misleading, but I felt as though the higher the average score for a particular department, the less interesting the students there tended to be,” said Mr. Higuchi. He learned discipline through the pecking order at school, and passion from unique upperclassmen.

A master’s in business administration was the turning point in becoming a manager

Mr. Higuchi graduated in 1980 after performing research in the 2nd Electron Beam Division of the Electrical Engineering Department and entered Matsushita Electric Industrial Co., Ltd. While mainly working in welding division, he was met with an opportunity to shift form technician to manager after about 10 years in the division: Mr. Higuchi would study in the School of Management at Harvard University. Even after making it through the difficult entrance examination, he studied hard despite a lack of sleep, which wore on both his body and mind. Good grades and active participation in class were necessary to pass. “I was raised in a Japanese household where most of what we do is fairly low-key,” said Mr. Higuchi, who challenged himself to be assertive and communicate. Each time he entered the classroom, he would slap himself on the cheeks to psyche himself up, saying, “I’m aggressive, I can do this.”

After acquiring his MBA, he quit Matsushita Electric, seeking a wider world. After working at a consulting company and Apple Computers, he joined Compaq Computers. The merger between Company and Hewlett Packard Japan (HP) saw Mr. Higuchi utilize his management skills as president of the company. He raised performance and gathered the trust of his employees here as well, but a new crossroads was waiting for him: he was asked to revive Daiei, which was eligible under the Industrial Revitalization Law.

A fight to the death to bring Daiei back to life

The distribution industry was completely unrelated to the IT field in which Mr. Higuchi had previously involved. Reviving a corporation built by a charismatic leader was no easy feat. He was emotionally attached to HP. But after struggling to make a decision and consulting with many friends and acquaintances, he took the job, becoming the President of Daiei in 2005. He revived the company in just a year and a half. This may seem like another success story, but Mr. Higuchi said, “I couldn’t sleep. I couldn’t eat. It was a fight to the death. I lost 8 kg.” Mr. Higuchi has recorded this “499 day battle” in his book entitled “ Henjinryoku (Eccentric Energy)” (DIAMOND, Inc.).

This unique title came from the thought that “In order to bring about change, one needs the ability to smash office stereotypes with an unwavering axis and portray this conviction to employees through passionate speech.” Opposed by those around him and ready to face criticism, he became a “leader of change.” As he was an externally-appointed president, the rest of the homegrown management fostered a “show me what you’ve got” attitude, but he started new projects personally to bring about change. One project characteristic of this change was the “Vegetable Freshness Improvement Project.” At the time, Daiei was infamous among consumers for having less-than-stellar vegetables, but the organization was not able to improve them. Mr. Higuchi gathered motivated individuals from various sections along with himself to actively exchange opinions to reexamine distribution routes. The difference was astounding, with customers who previously checked vegetables now happily filling their carts without even a second look.

Restructuring should have the employee in mind

Despite all this, organizational restructuring “should have both the company and the employee in mind,” said Mr. Higuchi, enduring the brunt of the effects of layoffs personally. Of 263 stores across Japan, 54 were closed during his tenure. His humanity shone through even here; Mr. Higuchi went to each and every store closing to meet with the manager and employees. He was at a loss for words when a woman said, “Why are you closing the store? We’re just doing our best.” He teared up upon seeing the employees bow as the shutter closed for the final time, their shoulders shaking. “A leader must never run. I can’t have my employees follow someone who avoids going to difficult work sites or doing difficult world.” He certainly saw this conviction through.

• A complete understanding gives power to the company

In his book, the phrase “complete understanding” makes several appearances. Mr. Higuchi feels that by speaking with employees and getting their consent and agreement, he can continue down the path of change. “Complete understanding is what powers the company.”

Now, as the head of Microsoft Japan, he’s once again charging down the path of innovation in the world of IT. When a corporation succeeds, it’s easy to become complacent, but Mr. Higuchi takes pride in Microsoft’s constant embrace of the risk that comes with evolution. “IT will continue to become more important, and with it, lifestyles and workstyles will all continue to change. For now, I’d like to further enhance our devices. I want to develop Microsoft Japan into a company that can both contribute to and inspire Japan. That’s my dream.”

Keep giving it your all and it will eventually come to you

Mr. Higuchi also has a soft spot for his alma mater, returning numerous times as a lecturer, and he has even had opportunities to lead discussions with graduate students at his company. “As a university in one of the two great economic spheres in Japan, I want Osaka University to not only produce outstanding human resources that can be active on the world stage, but also to provide education in which students foster an interdisciplinary mind,” said a hopeful Mr. Higuchi.

An excerpt from Mr. Higuchi’s discussion with OU students
Cross Boundary students ask Mr. Higuchi: What is necessary for a leader?
http://www.cbi.osaka-u.ac.jp/activity/113.html

• Microsoft Japan Co., Ltd.

Established in February 1986, Microsoft Japan Co., Ltd. primarily focuses in software, cloud services, and device sales and marketing. In 2011, the 25th anniversary of Microsoft Japan’s establishment, the company moved its headquarters to the Shinagawa Grand Central Tower in Shinagawa, Tokyo in order to become “a company rooted in Japan and trusted by Japanese companies.”

Note: This is a reprint of the article posted in the Osaka University NewsLetter No. 63 (Spring 2014).