Japan as Only 1

 As the season for warm, hearty meals approaches, mushrooms— kinoko in Japanese—frequently appear in dishes like hot pots. I personally love maitake mushrooms, although “mushroom” is how we refer to them in English. Interestingly, we intentionally call our management style Kinoko Management in English as well, keeping the unique essence of this concept. Mushrooms are not vegetables but fungi. Their defining role is in promoting decomposition, enabling the cycle of life to continue. What we see above ground—the mushrooms themselves—is just the tip of the iceberg. Below the surface lies the expansive mycelium network , an intricate web that connects mushrooms and plants, instantly sharing information and nutrients. Without fungi, the world would be overwhelmed by dead plants and animals. Thanks to their work, living organisms return to the earth, becoming nutrients that sustain new life. Mushrooms come in countless varieties. They differ in size, shape, and color—some are vibrant ...

 Are you afraid of criticism? I wish I could say I’m not, but like many, I also prefer to avoid it. However, as a leader, avoiding criticism is not an option. Leaders must take actions that can transform organizations and society, even if it invites criticism. Excuses do not inspire or lead to meaningful impact. Why? Because any change creates winners and losers. Some will benefit, while others may feel they are at a loss. As the CEO of Hattori Group, my strength is staying firm on what I believe is right, even in the face of criticism. But this also brings a weakness—concentration of power. Without proper governance, it can be risky, much like extending leadership indefinitely, as seen in some world leaders. A leader who fears criticism and avoids action cannot drive change. At the same time, ignoring everyone’s input and becoming a dictator doesn’t help either. Balance is essential, and timing is key. When circumstances demand improvement and growth, strong leadership is needed. ...

 Last week, I had the opportunity to give a lecture on family businesses at the University of Tokyo. During my previous lecture, the chairman attended in person, which admittedly made it a bit challenging to speak openly (laughs). However, I still shared candid insights about our strengths, weaknesses, and everything in between. This time, I had more time to go into greater detail. With the chairman absent, I felt a bit more at ease (laughs), and it struck me once again how unique our succession model truly is. In our case, the parent and child generations have completely separated their areas of authority and responsibility, allowing each to make independent decisions. While I’m not claiming this is the “correct” approach, it undeniably serves as a fascinating example for participants. For successors, having the authority to make decisions is essential to develop a sense of responsibility. Without this, they remain dependent on the predecessor’s instructions or may shift blame to ...