232 Koji Endo, Chairman, Kai Group

Koji Endo's approach to leadership in Japan offers valuable insights into navigating the complexities of running a business in a culturally rich and nuanced environment. As the third-generation leader of the Kai Group, Endo inherited a legacy steeped in tradition and innovation. He took over the presidency at 33, following the sudden passing of his father, and transformed the company from a predominantly domestic enterprise into a global brand. This journey required balancing respect for the past with a vision for the future, a common challenge in Japanese family-run businesses.

Endo’s leadership emphasized long-term thinking, a cornerstone of Japanese business culture. Unlike the transactional and short-term focus often seen in Western business practices, Japanese leaders prioritize stability, trust, and sustainable growth. This philosophy shaped his approach to building relationships with partners and his commitment to ensuring the company’s enduring success.

A key part of Endo’s preparation for leadership involved working outside the family business. Like many successors in Japan, he spent time at another company to gain practical experience and understand the mindset of frontline workers. This broadened his perspective and provided him with a deep appreciation for the challenges faced by employees, enriching his ability to lead with empathy and insight.

Building trust within the organization was another pillar of Endo’s leadership. Upon assuming his role, he prioritized open communication, respect for experienced executives, and fostering a collaborative culture. One of his innovative strategies was the use of Shuho, a weekly reporting system where employees shared updates and ideas. This not only allowed him to stay connected with the workforce but also encouraged a flow of ideas from all levels of the organization.

Endo's tenure also marked a period of significant change for the Kai Group. He expanded its international presence, increasing overseas sales from 20% to 55%. This required navigating diverse markets and cultural differences while maintaining the company’s reputation for high-quality products. Endo’s ability to adapt to changing environments and embrace new opportunities was crucial to this success.

In passing the presidency to his son, Endo highlighted the importance of respecting generational shifts. As chairman, he provides guidance while allowing his successor the freedom to shape the company’s future. For foreign leaders in Japan, Endo advises cultivating relationships outside of work, respecting local customs, and visiting worksites to understand operations firsthand. His leadership, influenced by patience and Zen-inspired mindfulness, underscores the value of humility, cultural sensitivity, and a commitment to sustainable growth.