Unlocking Japan’s

potential
How culture can drive success in
post-merger integration

¥209tn US$600bn 57%

Nikkei 225 M&A spent by Japan of business leaders
Japanese companies’ in the past decade surveyed indicated
current cash reserves incompatible cultures
(US$1.9 trillion) as a key factor in
M&A failures

www.pwc.com.au
Contents
Executive summary 4

1. Introduction 7

2. Defining culture and its importance 13

3. Challenges confronting our clients 21

4. Industry point of view 27

5. Recommendations 33

6. Hypothetical case studies 39

7. Conclusion 43

Contacts 46

All figures shown in this report are denominated in US dollars (unless otherwise stated).
Unlocking Japan’s potential | 3
 Executive
summary
In recent years, corporate Japan Cultural factors can also have
has been gradually accounting a significant negative impact
for a greater share of global on business performance by
M&A action and this trend is as much as 57 per cent. This is
only expected to continue. supported by studies that indicate
incompatible cultures being a
As the number of Japanese key factor in M&A failures.1
companies acquiring subsidiaries
abroad grows, at PwC we have Interviews with CEOs of leading
worked hard at examining ways to Japanese multinational companies
extract greater value from these have helped us pinpoint some of
increasingly common transactions. the biggest cultural challenges
relating to either acquiring or
We believe the need to fully realise operating subsidiaries abroad.
the potential synergies of a well-
chosen acquisition will put pressure These challenges include problems in:
on the current ‘set-and-forget’ model • engaging overseas teams
of acquisition, where a Japanese
• communicating across borders
company largely leaves the foreign
acquisition to its own devices. • conflict resolution
• retaining talent
The majority of Japanese companies
are spending significant amounts • adequately preparing executives
of time and effort on commercial to manage overseas subsidiaries
due diligence when it comes to As we point out in this report, Japan’s
acquisitions, but far too little time unique workplace culture creates
on doing cultural due diligence and even greater challenges to achieve
putting in place plans to integrate integration after an acquisition.
the business post acquisition.
The upshot is M&A is proving But it can be done and has been done
far more difficult than it needs successfully by a range of companies
to be for many companies. including Takeda, Hitachi, Mitsui &
Co, Mizuho and scores of others.
Our research, and the direct
experience of those companies we
work with closely, has shown this
approach produces fertile ground for
communication problems between
head office in Japan and the acquired
company, lower levels of employees
engagement and ultimately a failure to
extract full value from the acquisition.

1
Source: Harvard Business Review and Towers Perrin Study, Global survey of 136
senior executives, 2002
4 | PwC
Models to achieve cultural strategy formulation, where 5. Be transparent and involve
integration differ, but there are appropriate, and running cross- subsidiaries in decision making,
a range of measures that apply cultural strategy sessions. and clarify roles (particularly
irrespective of the exact model 2. Develop talent management of expatriates) and reporting
chosen to achieve integration after and global mobility strategies lines, to minimise confusion
the acquisition of a subsidiary and programs to ensure that within subsidiaries. Consider
in North America, Europe, talent is appropriately selected, the appointment of specific roles
Oceania or elsewhere in Asia. prepared, deployed and managed to help reduce the culture gap
when moving overseas. such as a ‘Chief Japan Officer’.
This report contains five clear
recommendations from PwC to 3. Redesign performance The recommendations go further to
establish the foundations for management practices, suggest where culture aligns to the
successful integration in M&A. particularly around upskilling M&A cycle it is clear many of these
Underpinning all of these managers in capabilities recommendations are people-centric.
recommendations is the need to of authentic feedback and
understand and appreciate the performance discussions,
immense differences in cultural supported by HR systems.
traits and approaches to business 4. Build stronger relationship by
that exist. This will enable greater increasing communication and
understanding by all parties and collaboration across functions,
a mutually beneficial approach countries, and headquarters to
to working to be established. leverage expertise within the
1. Improve strategy organisation and to maximise
communication to subsidiaries business opportunities.
by involving subsidiaries in

Unlocking Japan’s potential | 5

6 | PwC
1. Introduction

Unlocking Japan’s potential | 7

 1. Introduction
It was Bill Clinton who described globalisation as
essentially irrepressible.

The secret to a bright “It is the economic equivalent of a force change (most often covered from
of nature, like wind or water.” he told the perspective of automation’s
future seems to me to lie in university students in Hanoi in 2000. threat to jobs), PwC also nominates
flexibility and in the ability urbanisation, shifts in demographics
“We can harness wind to fill a sail. We and power towards the developing
to reinvent oneself” can use water to generate energy… world, resource scarcity and climate
Jon Williams, PwC but there is no point in denying the change as among the megatrends
existence of wind or water, or trying that will shape the coming decades.
to make them go away. The same
is true for globalisation. We can One thing is certain, PwC’s joint
work to maximise its benefits and Global Leader for People and
minimize its risks, but we cannot Organisation Jon Williams says:
ignore it, and it is not going away.” “The secret to a bright future seems
to me to lie in flexibility and in
Fast forward 16 years and attitudes to the ability to reinvent oneself.”
globalisation in the West are no longer Leaders must plan for a dynamic
so positive and political developments rather than a static future, with
– such as Brexit, the collapse of the many and evolving scenarios.
TPP, and the US elections – mirror
the views of the broader population. The benefits and threats of this
changing environment are keenly
But in rising Asia, which is predicted to understood by Japanese multinational
account for 50 per cent of GDP by 2050, corporations, who have strived hard
views could not be more different. in recent years to establish networks
Support for globalisation stands at of global subsidiaries and the all-
more than 70 per cent across much important earnings that they bring in.
of Asia and is above 80 per cent in The shrinking domestic market and
India, Vietnam and the Philippines. ongoing weak economic conditions
Sentiments are matched by action. To at home have amplified pressure for
take one $500bn example, China is companies to expand abroad and
unrolling its Belt and Road Initiative, set up streams of export income.
a modern day reimagining of the land And future challenges loom large
and sea trading routes connecting including deregulation in sections
the Middle Kingdom to Europe. of the domestic economy and
The geopolitical shifts of globalisation increased competition from abroad.
are in reality just one facet of the Japan’s corporations are also
change that is occurring. In PwC’s acting against a backdrop of a
2017 Workforce of the Future declining domestic population and
we identified some of the other economy and surging growth in the
related megatrends shaping the surrounding region.
global picture for corporations and
their employees as we approach
2030. Along with the obvious
one of breakneck technological

8 | PwC
 2,000

1,500
If current trends continue, today’s This greying demographic profile
population of about 127 million has already been driving Japanese
will halve by the end of the century. outbound M&A and in recent years
1,000
The number of Japanese aged 65 has seen that trend gather pace
or older is thought to already top with the continued availability
25 per cent of the overall population. of cheap debt for expansion.
500

Corporate Japan (with the exclusion0 of Financial Services)

is still piling up its Cash FY 3/2013 FY 3/2014 FY 3/2015 FY 3/2016 FY 3/2017

$BN
Cash & Cash equivalent $BN
Retained Earnings
($=110JPY) Nikkei 225 companies ($=110JPY) Nikkei 225 companies
2,500 4,000

3,500
2,000
3,000

2,500
1,500

2,000 140

1,000
1,500
100
1,000
500
500
60

0 0
FY 3/2013 FY 3/2014 FY 3/2015 FY 3/2016 FY 3/2017 FY 3/2013 FY 3/2014 FY 3/2015 FY 3/2016 FY 3/2017
20
Source: Ministry of Finance (Japan)

Retained Earnings
$BNfigures put the size of Nikkei
Recent Post’s $6bn takeover of Australia
Nikkei 225 companies Japan’s companies are thus under 20
($=110JPY)
225 companies’ cash reserves logistics company Toll Holdings. pressure to develop corporate
4,000
at a near record 209 trillion yen structures that will allow the
(US$1.9 trillion) which sits alongside In the history of Japanese M&A devolution of responsibility and
3,500
an impressive level of retained activity, decades of cheap finance has power to local subsidiaries to
60
allowed poor performing investments 2
earnings
3,000
of almost 400 trillion yen fully tap the energy, diversity,
(US$3.6 trillion) (see diagram above). to survive. However, this is changing enthusiasm and potential that
as investors demand greater capital these acquisitions promise.
2,500
Thomson Reuters data included discipline and dividend returns.
in the figure below shows Japan And at the same time, these
2,000
has spent more than $600bn in This means the days of bolt-on structures should bring Japan’s
M&A over the past decade and acquisitions that have little or no commitment to quality, customer
1,500
from 2009 onwards there has been expectation of integration into service, product development,
a clear the Japanese parent company are
1,000 shift away from domestic numbered, and the next wave of
production skills and brand
M&A to cross border M&A. development to the company
dominant Japanese acquisitions will that has been acquired.
The500
figures show a surge in both deal become truly global businesses.
value and deal volume with a string Now, more than ever, culture will
0
of major FYplays including Softbank’s The result is an ever growing number be critical. Recent OECD research1
3/2013 FY 3/2014 FY 3/2015 FY
of3/2016 FY 3/2017
Japanese companies needing to
$32bn acquisition of ARM Holdings suggests at a time when “effective
and the earlier $20.1bn acquisition of capture the synergies that should and appropriate communication
Sprint Nextel Corp in the US, Tokio flow from M&A activity - even within diverse teams is already a
Marine and Nichido Fire’s $7.5bn before the wave of offshore M&A component of success in a majority of
acquisition of the US giant HCC activity extends to Japan’s numerous jobs,” levels of cultural competence
Insurance Holdings and Japan small to medium sized businesses. are inadequate and efforts to embed

1
OECD: Global competency for and inclusive works

Unlocking Japan’s potential | 9

the concept of Global Competence in in measures of culture as can be understanding of the more complex
education are only just beginning. seen in the cultural decision making challenges that face management
map developed over 13 years by of the subsidiary in motivating
For Japan, global competency INSEAD professor Erin Meyer employees and dealing with
and cross cultural skills will be a and published in an article in external factors such as labor unions,
necessity for any Japanese investor the Harvard Business Review. regulatory issues and other risks.
wanting to successfully expand
into new international markets. In an M&A context, these inherent Some estimates put the failure
differences often deepen once the rate of mergers at between 70 and
At a corporate level, the profound transaction is complete as foreigners 90 per cent is not hard to envisage
difference between business struggle to grasp Japan’s consensus- a rate and acquisitions exceeding
culture in Japan and the Western based decision making model and these parameters for cross cultural
world, and indeed other parts of the acquired company wonders about mergers.1 According to a McKinsey
Asia, are readily apparent to both the indirect nature of communication survey, 25 per cent of executives
sides in a joint venture, merger or from the parent company. said that the absence of “cultural
collaboration between a Japanese fit” was a key reason why so many
company and foreign counterpart. In turn, the Japanese parent can mergers fail (Perspectives on Merger
strike difficulty with the less rigid Integration 2010). And 50 percent
Japan, with its highly consensual yet and systematic processes of the
hierarchical approach to decision said that “cultural fit” lies at the
acquired company and lack an heart of a value enhancing merger.
making, stands as a global outlier

Japanese M&A trends: 2006 to 2016, US$ billion

140 10%

51
100 31 8%
59
16 63
18 56
29
47 65
60 6%

83 83 25
79
70 63 60
50 51
20 32 4%
31 34

15 18 12 17
23 21 24 24 24 22 26
20 15 12 2%
14 9 4 18
24 17 24
31 30

60 0%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

X-Border (Japan>Overseas) Domestic M&A

Source: Thomas Reuters

As Meyer writes, the concepts of nemawashi (the

practice of speaking with each individual stakeholder
before a meeting in order to shape the group decision
and develop agreement in advance) and ringi (the
process of proposals percolating through middle
management before reaching the executive leadership)
are not features of global corporate culture with the
possible exception of Germany.”
Harvard Business Review

The Big Idea: The New M&A Playbook

1

Clayton M. Christensen, Richard Alton, Curtis Rising, and Andrew Waldeck, Harvard Business Review, 2015

10 | PwC
Culture incompatibility is cited as a common
cause of merger and acquisition failure1

Incompatible
cultures 57%

Synergies non-existent
or over-estimated 54%

Inability to implement
change in new organisation 49%

Clash of management
styles/egos 42%

Inability to manage
target organisation 24%

Global survey of 132 senior executives (2002) - 45% from Europe,

1

24% Asia Pacific, 17% USA, 13% rest of world (HBR & Towers Perrin)
Survey of M&A Causes of Failure

Cultural integration was the second Nomura), genuine diversification

most common direct factor cited of the workforce (such as Softbank,
for deal failure by companies in Fast Retailing), improved post
Aon Hewitt’s Global Survey in merger integration efforts (such
2011 of 123 companies involved as Suntory) and innovative
in M&A across the the world and approaches to organisational
this has increasingly become design (such as Rakuten).
recognised as a top issue in M&A.
Establishing new and fresh
Of course, leading Japanese approaches to cultural challenges
companies are aware of these issues facing Japanese acquirers of foreign
and are taking significant strides companies is the focus of this
in overcoming the challenges publication and we have set out the
including: improved management challenges that need to be overcome
and governance practices (such in bridging this divide as well as
as Takeda Pharmaceuticals, how to go about solving them.

Unlocking Japan’s potential | 11

12 | PwC
2. Defining culture
and its importance

Unlocking Japan’s potential | 13

 2. Defining
culture and its
importance
As people, we all feel we know PwC’s model to define culture also
intuitively what culture means and makes the point that culture has
represents. In Japan, traditions, an inertia of its own and it takes
rituals, ways of behaving and social strong and persistent effort to effect
norms go back centuries. cultural change.
In the business world, there are
strong differences in the cultures of What is culture?
individual organisations, but most
markedly, between organisations from
different countries.
Before we begin to look at those Culture is....
differences, and how to bridge or
overcome them, it’s worth delving “...self-sustaining
deeper into the true breadth of what
culture represents. patterns of behaving,
• While culture is intangible, it feeling,
can be defined as a set of shared
assumptions, values and patterns thinking and
of behaviour that guide individuals’
actions or decisions. believing - that
• An organisation’s culture will determine
guide the way business is carried
out within the organisation. how we do things
• This definition encompasses the around here”
iterative way that culture develops
organically over time in line with
the cumulative traits of the people
the company hires, especially
its leaders.

14 | PwC
How culture impacts organisations
PwC surveys indicate that 84% of organisations believe that culture (organisational) is critical to business success.

National culture traits

“How we set people up
for success” “What and how we lead”
• Capabilities • Leadership style
• Diversity • Strategy definition
• Communication • Strategy articulation
People Strategy

“How we behave” Culture “How we operate”

• Values • Business infrastructure
• Decision-making • Organisational structure
• Measure & monitor • Roles & responsibilities/
Ways of Business accountability
behaviour change
working environment

Industry specific culture traits

Cultural differences amongst Japanese

companies and foreign companies
An organisation’s culture is While there can be profound
also usually heavily influenced differences in culture between
by national cultural traits. companies of the same nation, it
In Japan’s case, these are the is clear that, generally speaking,
preference for consensus decision there are some well established
making, a more profound sense of cultural differences between
obligation binding employees and Japanese companies and
companies, pride of workmanship companies from outside Japan.
and the concept of monozukuri,
the notion of the collective being The relationship between employees
greater than the individual and and employers in Japan is globally
the belief in or harmony. unique and means Japanese
acquirers view many things
Not surprisingly, these result in a about acquisitions differently.
unique business culture that has
many key differences with what The following table illustrates
exists in the rest of the world. some of these differences.

Unlocking Japan’s potential | 15

 Japanese companies Global companies
Concept of wa ‘peace and harmony’ overriding consideration Creative tensions embraced in some circumstances
Consensus-oriented decision making Top-down decision making
Planning or strategies based on past performance and
More forward-looking planning process
experience
Indirect communication often preferred; even important Direct communication favoured. Key points spelled
points stated indirectly and implicitly out clearly
Bottom-up decision making – ideas circulated through Strategic decisions can be taken unilaterally at the
middle management before executive decides upper levels
Slow in reaching decisions Fast decision making processes
Age-based seniority Merit-based seniority
Tenure-based promotion is common, lateral moves rare Talent-based promotion, lateral moves common among
among employees employees
Responsibility rarely devolved much beyond headquarters
Branch offices and subsidiaries have considerable autonomy
or regional headquarters
Careful in expressing personal views Freedom to express personal views
Considerable time invested in conflict resolution Conflict not seen as entirely a bad thing
Varies between countries, but tends to be more informal
Formality in dress, style, modes of address entrenched communication, dress and style
Hours of work long and inflexible Hours of work shorter and more flexibility
Long-term approach to success – profits, returns etc Short-term approach to success – profits returns etc
Operational excellence rather results Financial results are what counts
Source: Approaching M&A with Japan: Maximising your Success, PwC

Mapping Leadership Culture

TOP-DOWN

Indonesia
Saudi Arabia China
India
Russia

Mexico
United States
France
Brazil
Canada United
Kingdom
Australia

EGALITARIAN HIERARCHICAL

Belgium

Germany

Netherlands
Denmark

Norway
Sweden Japan
CONSENSUAL

Source: Erin Meyer, Harvard Business Review

16 | PwC
Americans, for example, are used to thinking of the
Japanese as hierarchical while considering themselves
egalitarian. Yet the Japanese find Americans
confusing to deal with. Although American bosses are
outwardly egalitarian—encouraging subordinates
to use first names and to speak up in meetings—they
seem to the Japanese to be extremely autocratic
in the way they make decisions. As a Japanese
manager living in the United States and working for
Mitsubishi put it: “I couldn’t figure out how to adapt
my approach from one day to the next, because the
culture was so contradictory and puzzling.”
Harvard Business Review

Unlocking Japan’s potential | 17

The link between culture and business performance
The cultural differences described in the previous section and a significant impact on organisational culture,
which research shows can impact business performance and particularly, the success of M&A. Recent studies place the
failure rate of M&A between 70 and 90 per cent1. Senior executives frequently attribute M&A failure to incompatible
cultures, indicating cultural alignment during integration is critically important to M&A success.

Measurement and feedback

Organisational Culture
Decisions Behaviours
Intrinsic
motivators Judgement Routines
Purpose Trade-offs, and habits
moments ways of
vision that matter working
values

Approx. 70% of variance in

org. culture can be explained by r formanc
differences in leadership style Pe e

Business
Leadership behaviours results and
Communications People Practices outcomes
Structure (reward training, talent, etc.)
Performance measures External environment

Reinforcers

Measurement and feedback

Source: PwC

PwC’s Ryosuke Sasaki, a specialist “It is changing though. There is “Where Japanese companies make steps
in talent management and a Japan- more pressure on companies to understand their own Japanese
based partner, says the price of failing to capture those synergies.” workforce and bring the non Japanese
to integrate subsidiaries, in terms of workforce into the tent, we have seen
lost synergies, can be considerable. The financial and human resources more successful organisations as a
benefits of achieving cultural consequence. There is greater respect.
“The performance of the acquired integration are considerable and Kirin, Dentsu and Takeda are examples.”
company doesn’t change, and the come with a string of other benefits.
expected synergies don’t materialise He also says companies need to
such as introducing clients to each “If you are to configure an value and retain those Japanese
other, or sharing services and organisation that has a common employees who can steer newcomers
back office functions,’’ he says. set of guidelines and vision and through the cultural maze of
incorporates the best of Japanese the Japanese corporation.
“In the US, Japanese companies and non Japanese cultures you are
have made so many acquisitions, going to be much more successful,’’
but yet these subsidiaries are all PwC’s Asia Pacific Japanese
isolated from each other. There is Practice leader Jason Hayes says.
no synergy at all, so the question is,
why did you buy these companies?”

1
Source: The Big Idea: The New M&A Playbook Clayton M. Christensen, Richard Alton, Curtis Rising, and Andrew Waldeck,
Harvard Business Review, 2015

18 | PwC
 An industry perspective
“Japanese culture is so tightly woven into the DNA And without good communication you can lose
and is so resilient that some of the most effective good staff, or what’s worse is when staff become
coaches have been those that have guided the other disengaged but keep collecting their pay cheques,’’ she
party through the cultural maze within Japanese says. “Also you are not going to have buy-in on the
firms. They are invaluable and should be celebrated.” implementation of the strategic plan because people
are not going to understand why you are doing certain
Mizuho’s Debra Hazelton says aside from things and why you are proposing certain initiatives.”
potentially enticing global talent into the parent
organisation, the direct effects of failing to “These decision-making processes are challenging
achieve cultural integration are profound. for Japanese acquirers. Sending in the Head Office
“brains trust” from Japan can totally negate the skills of
“If you don’t get the cultural integration right you can’t those on the ground and that leads to communication
really optimise any of the metrics for a successful challenges and reinforcement of cultural stereotypes
acquisition – revenue synergies, cost synergies, that undermine mutual trust and respect.”
market share increase – and the deal can fall apart.

Unlocking Japan’s potential | 19

20 | PwC
 Introduction
3. Challenges confronting
our clients

Talent in Asia | 21
 3. Challenges
confronting
our clients
Culture is the dominant theme running through the
challenges that have emerged from PwC’s study of a range
of cross-border M&A.
Given the often profound differences between corporate cultures and the
importance of culture to an organisation’s bottom line, navigating differences
is clearly a vital part of the M&A process.
There are typically three approaches taken by organisations to address cultural
difference during the M&A process.
Many Japanese companies in the past have taken the “Hands Off” approach
to cultural integration and fail to allocate any of their talent and financial
resources to fixing these problems, or trying to achieve greater synergies.
That’s in stark contrast to their peers in Europe, the US or greater parts
of Asia who demonstrate a preference for a more balanced approach.
There are clearly cultural challenges associated with each of these
approaches. In PwC’s experience these challenges associated with the
‘Hands Off’ approach taken by many Japanese companies results in
the greatest loss of potential synergies and business performance.

22 | PwC
Approaches to address cultural
difference during M&A
This is often the default approach where no
explicit effort at cultural integration is attempted.
Hands Off This can sometimes be the right approach,
but again is unlikely to achieve the maximum
synergies possible.

Integrates the best components of both cultures

Balanced that will most effectively achieve the strategic
approach rationale for acquisition and realise the greatest
possible synergies.

Attempts to bring the parent company’s culture

to the target. Again, this could be the right
Cultural approach in a limited number of cases, but
is very difficult to effectively execute. In most
imposition instances, the rationale for acquisition can easily
be lost in this approach.

The Key Challenges

From interviews with senior leaders 3. Talent Mobility
from Japanese organisations, management obstacles
as well as working with our Challenges in leadership styles
clients, we have identified four often impact the ability to
key issues that contribute to develop and retain key talent
cross-border M&A failure. and high potential candidates.
1. A lack of transparency There is limited preparation of
and engagement personnel sent from headquarters
For many leaders in overseas to manage companies abroad,
subsidiaries there is dissatisfaction and mobility programs are
with the communication of strategy, rarely well established.
poor understanding of how strategic There is often also a lack of globally
decisions are made, and little or no savvy managers with cultural and
opportunity for branches linguistic skills, and in many cases
to contribute to shaping the Japanese headquarters’ policy of
local or global strategy. employee rotation doesn’t allow for
optimum deployment of talent.
Historically firms have done In cases where an individual
little to involve subsidiaries in manager develops a deep knowledge
the development of the parent or affinity for a country, they
company’s corporate strategy are sometimes made to return
reducing the acquired company’s, prematurely with limited influence
adherence and commitment to it. on their subsequent deployments.
2. Cultural misunderstandings 4. Inability to manage
Challenges exist in successfully performance
working with overseas subsidiaries The inability to manage
to obtain the promised benefits in performance in overseas
acquired companies. This is often a subsidiaries is exacerbated by
result of cultural misunderstandings differences in leadership styles
leading to poor relationships. and communication barriers.

Unlocking Japan’s potential | 23

PwC’s research indicates there Acquiring companies must also pay Often problems begin because the
are two systems challenges. careful heed to remuneration and parent company’s local and global
that exacerbate these issues. how to handle the differing scales, operations don’t exist as separate
expectations and legal requirements on entities in the structure and do not
The first is insecurity fuelled salary given foreign execs, particularly have separate management teams.
by lack of communication: in the US, are almost invariably paid
far more than those in Japan. Mergers and acquisitions can also
Often employee needs are strike trouble through the lack of
insufficiently considered in M&A Effort must also be made to overcome physical proximity between the parent
between Japanese and foreign the development of prejudices and the subsidiary, reducing the
companies. Employees in the acquired or negative stereotypes about opportunities for the kind of face-to-
company are often concerned about the foreign subsidiary and the face contact that can lead to better
whether there will be lay-offs and Japanese head office, respectively. understanding between the parties.
whether their jobs will be safe.
The second area is structure By failing to set-up regional
These worries flourish where and proximity: headquarters to manage offshore
there is little or no communication subsidiaries and create a breeding
on this issue, which can rapidly PwC’s analysis of cultural issues ground for global talent is
affect morale and performance suggests the traditional “control holding corporate Japan back.
in the acquired company. tower” structure of Japanese
expansion where the Tokyo Many of the cultural integration
Unless you have people with strong head office serves as control challenges we observe are are
strategic communications skills tower is no longer feasible. equally applicable to new and
that understand employee needs legacy acquisitions that may have
on both sides, it can be difficult. been held for a number of years.

For a long time the structure has been the control

tower, where Japanese companies have no regional
headquarters structure in place. It is a problem where
you have domestically skilled and trained executives
with no international experience trying to run these
businesses out of Japan.
If you think back 20 years ago most Japanese
multinational companies had a very large Japanese
expat workforce that would manage their businesses
around the world. The control tower syndrome was
less of a thing back then. In the late 90s, most Japanese
companies brought their workforce back into Japan.
Now the consequences of that withdrawal are apparent.”
Jason Hayes, PwC

24 | PwC
An industry perspective
Masaaki Tanaka, Senior Global Advisor of PwC that was comprised of six local leaders and three
Japan, has extensive global business management expatriates, and he empowered the committee to
experience as the former CEO of Union Bank, a make important decisions. “This approach ended up
large U.S. subsidiary created through acquisitions attracting more talent from the market and nurtured
by Mitsubishi UFJ Financial Group (MUFG) and the bridging of cultural differences,” he says.
headquartered in San Francisco, and former CEO
for the Americas of the Bank of Tokyo-Mitsubishi “Established major Japanese corporations tend to
UFJ (BTMU) based in New York, and former Deputy have a culture to stay away from the leaders of
President of MUFG at the Tokyo headquarters. the acquired company or foreign local executives.
“There are only a small number of major Japanese
Tanaka says, “It is critical to provide local leaders corporations having foreigners on their Boards.
of acquired companies or foreign operations They need to realize that one of the most important
opportunities to join the decision-making aspects of acquisition is to acquire “talent”. If they are
process, express their points of view, and be unable to effectively utilize the acquired talent, the
a part of the final corporate decision.” acquisition is headed towards a failure,” he says.
During his time as CEO for the Americas of
BTMU, he created a management committee

Unlocking Japan’s potential | 25

26 | PwC
4. Industry point of view

Unlocking Japan’s potential | 27

 4. Industry
point of view
Nippon sheet glass –
Celebrating diversity
Nippon Sheet Glass’ all-in approach to cultural integration is a
rarity in corporate Japan. Not only did the company completely
integrate its key acquisition – the UK-based glassmaker Pilkington
that it bought 10 years ago – it now has a geographically and
culturally diverse senior executive leadership team.
NSG’s former head of talent and reward and current regional HR
Director Asia, Keita Kakehashi, shares some of the lessons of being the
canary in the cultural integration coalmine for corporate Japan and
why he thinks other Japanese firms will have to take the same path.

28 | PwC
How important is it to What are the risks or We recognised somewhat the
achieve cultural integration negative effects of failing importance and we quickly started
intercultural training on both
following a merger or to achieve a high level of sides and also we assessed the
acquisition involving cultural integration? people with various competencies
a Japanese company There are a lot of risks with including intercultural sensitivity.
and a foreign firm? less efficient meetings, a lot of However, to be honest I don’t
unproductive political battles, know if that was really effective.
It is significantly important to
integrate the two different cultures wrong management decisions, etc. Any training on intercultural
effectively after any M&A. Especially sensitivity will be effective only
Japanese companies should recognise
What are some barriers when people have real experiences.
the importance. Nippon Sheet Glass, to effective post- They need to face a cultural
a Japanese domestic company at merger integration? dilemma in their day to day business.
that time, recognised somewhat Then any theoretically academic
A lack of leadership, communication, information provided by intercultural
the importance at the time when
information, prioritisation consultants may be beneficial.
we acquired the UK listed company
would be the typical barriers.
Pilkington. We invited external
I think we did what we could at the
consultants and ran intercultural What is the best way to time. But 10 years after acquiring
sessions both in Japan and outside
Japan as soon as we had done the achieve cultural integration? Pilkington we still see some conflicts
between the two cultures. Two
deal. We also assessed all of the Ideally, the best way is to identify cultures means not only the former
key senior leaders and intercultural key ambassadors who may NSG culture and the Pilkington
sensitivity was a part of competency establish trust from both sides culture, but also the two national
used for their assessment. The and may influence people. cultures. You can imagine there
challenge for us was we were not
are big big gaps between Japan
sure if those initiatives were really What are some areas where and Western countries. Still we
successful. The dilemma for such NSG has performed well in see a lot of conflicts after 10 years.
intercultural training is people
will never know the importance
terms of cultural integration? However we have learned a lot and
there are more people who are
until they face actual issues in Both sides learned a lot from experienced in non-Japanese people
their daily business. People who the 10 year day-to-day business management and it is getting better.
had experiences with real issues in experience. They know the pros and
their past career learned more than cons of the different cultures. I see What were the big cultural
those who had less experiences. Ten fewer cultural conflicts now. But
years have already passed since our
gaps you needed to bridge?
still because of language barriers
acquisition, and we are sure that our and other gaps there are still some A typical difference between Western
people learned a lot on intercultural misinterpretations between the two. and Japanese culture is management
sensitivity from their daily style. As you are fully aware Japan
business. If our senior executives What were some of is a consensus oriented country.
had been more experienced in the things that did At the same time we usually do not
intercultural business 10 years ago, not go so well? have a strong charismatic leader
we should have been more aware in the organisation. However once
of the importance of intercultural Looking back 10 years ago the we decided all of the organisation
sensitivity, but the reality was former Nippon Sheet Glass group will move to a single direction. In
they were not 10 years ago. was a fairly domestic company, the Western style of leadership –
so we realised that the reverse although of course there is a wide
merger with Pilkington will heavily variety of leaders – overall they tend
impact on our corporate culture. to demonstrate stronger leadership.
Especially at that time because So now we have a single criteria to
Pilkington was twice as big as us assess leadership potential of talent
in terms of revenue and in terms in the group that is more Westernised.
of headcount. And we had fewer
executives on the NSG side who
could manage non-Japanese staff.

Unlocking Japan’s potential | 29

Which has changed more? What would be your I saw an article about Ajinomoto,
The Japanese culture at advice to Japanese their CEO had a career outside
Japan and also all of the executive
head office in Tokyo or the companies embarking on committee members have expert
culture at the UK subsidiary? cultural integration? experience. Maybe they know what
Our uniqueness as an organisation My advice to other companies is they need to do more than other
is that we are fully integrated. firstly to be neutral to different companies. Little by little things
For example looking at our HR cultures. Even though Japanese are changing, but maybe not the
organisation, I am responsible for companies originate in Japan, we top leaders of the companies.
group talent and human resources should be neutral to non-Japanese
in Asia at the moment. I am culture. And then you appoint senior How important will it be
reporting to the chief HR officer in managers in the organisation who for Japanese companies
the UK. She started her career with should be fair to any different culture. to invest abroad and then
Pilkington, but she is currently chief That sounds too obvious, but I see achieve cultural synergies?
HR officer. So if you asked me where a lot of Japanese companies still
is the headquarters for HR, it is a treating different cultures unfairly. In many cases they acquired a
combination – she is based in UK, I am lot of non Japanese operations via
based in Tokyo and my direct reports Similarly the market in Japan M&A but in most cases they isolated
in talent and reward are based in the is also the same. Even if our their headquarters in Tokyo from the
UK. We are pretty much spread all business started from the Japanese operations outside Japan. As long as
over the world – our CEO is based market, if the Japanese market is they leave their headquarters away
in Japan and our COO is based in shrinking and there is not room from offshore operations they cannot
Germany. It is a lot more complex than for growth in the future, Japan transform their corporate culture
the typical Japanese organisation. is only one of many markets. in Tokyo.
My advice is to treat non-Japanese Some companies started to separate
You mentioned you have talent, non-Japanese culture Japan operations from non Japanese
some concepts that you fairly. That’s my advice. operations. That may be a practical
were still trying to get up initiative, but at the end of the day
internally – what are they? How well prepared are they need to integrate Japan with
Japanese companies now non-Japanese operations in the
Looking at the current group for cultural integration future. So I know our full integration
culture, our corporate culture is approach is pretty unique from other
asset driven. A typical product- and how important will
Japanese companies, but maybe in five
out culture, rather than market-in it be to get this right? or 10 years they will face the need to
culture. We have a broader idea to My personal view is that they are integrate fully their operation into one.
transform our corporate culture not really prepared to integrate
to more customer oriented and with different cultures because
innovative culture. I have proposed looking at the members of the board
a cultural assessment tool and want of directors, have a Japanese-only
to run a survey, but people are tired board. As long as the majority of
of too many surveys so perhaps members are occupied by Japanese
it was not a good time to start. I have doubts about whether they
have enough diversity of views.
Because of that most companies
are not really prepared.

30 | PwC
Unlocking Japan’s potential | 31
32 | PwC
5. Recommendations

Unlocking Japan’s potential | 33

 5. Recommendations
Meeting the cultural challenge
Our work running research sessions with more than 20 Japanese and Western multinational companies both at
their headquarters and at a subsidiary level has helped us develop a clear understanding of the challenges and a
way forward. These recommendations draw on the common themes emerging from those discussions and draw on
the deep expertise and experience of PwC’s advisory services in the cultural elements of post-merger integration.
Establishing cultural alignment following a merger or acquisition is important to ensure free flow of communication,
remove silos, set shared goals, and establish consistent practices and performance standards between the parent and
subsidiary groups. We believe by doing this, organisations will maximise the returns from the transaction and achieve
synergies across the group.

Recommendation for establishing cultural alignment

1. Strategy 2 Talent management 3. Performance

& mobility management

• Understand the cultural context • Ensure training programs cover • Strive for consistency in KPIs across
and local approaches to business soft skills as well as technical the organisation to guide employees
• Include subsidiaries in defining the skills to boost the capability of in executing the strategy
strategy, establishing shared goals Japanese executives to work in the • Provide timely and constructive
and accountabilities global market feedback to contribute to
• Foster communication and • Design a global mobility program performance improvement across
execution of strategy across to manage risk and provide the the group
the organisation to eliminate right support and onboarding to
misunderstandings and clarify goals ensure a successful posting and
employee experience

• Break down communication barriers that challenge the ability to build trust with
various members across the organisation. Create a culturally aligned team
4. Relationships
• Foster collaboration across functions, countries, and headquarters to leverage expertise
within the organisation and to maximise business opportunities

• Maximise involvement of subsidiaries in the decision making process to bolster

understanding and acceptance of the decisions made and the impact on the wider business
5. Transparency • Ensure clarity of roles (particularly of expatriates) and reporting lines to avoid confusion
• Remove communication barriers that challenge the ability to hold constructive
strategic discussions

34 | PwC
Communication, Global mobility is Encouraging
transparency and key to sustained action through
the importance success accountability
of starting early The focus post merger should also Cultural education alone does
turn to cultural interchange with not lead to cultural integration.
The common thread in all of the a mobility program designed to Responsibilities focusing on
recommendations covered in this ensure cross pollination of talent cultural matters should be
section is both sides maintaining between the two companies. accounted for in assigned roles and
an open mindset and willingness responsibilities within Japanese
to learn from one another. 89% of global organisations expect companies so that executives
an increase in global mobility (PwC’s strive to perform in this area.
Our work has highlighted the Modern Mobility survey) as they
importance of achieving unity recognise the importance it plays As Japanese people tend not to
on corporate strategy for both on business growth and success. work beyond assigned roles and
companies, or at the very least, responsibilities, they are unlikely
ensuring that the parent company’s In many cases, Japanese executives to proactively venture into the
strategy, and how it views the will not have worked abroad in a realm where the issue is addressed.
subsidiary in that, is adequately non-Japanese working environment The company must design for
communicated to the other party. and to make the most of the program, accountability in order to move
efforts need to be made to prepare forward with cultural integration.
Ideally, systems can be established these employees for the shift.
to enable the acquired company
to contribute to the overall
strategy or understand how it is
PwC’s Ryosuke Sasaki says managing
talent is critical to implementation
Managing talent
formulated. These systems need to sessions that bring together head is critical to
be flexible enough to accommodate office personnel and executives
the different ways in which from acquired companies in becoming a truly
feedback is given – more subtly
in Japan and more directly in the
Japan are a growing trend.
global company
“That helps non Japanese and
majority of Western countries. The next objective, beyond this
Japanese executives get together and
It is important to foster a more begin to understand the differences trouble shooting stage, is global
inclusive environment where and opportunities,’’ he says. talent management. This means
people have shared objectives. a system where executives can
And in foreign subsidiaries where move seamlessly through the
Recognise the priorities and the
there are issues between local organisation taking key learnings
milestones and show mutual respect
and Japanese management with them. But thanks to persistent
and trust on both sides. Work
sent to run the company, offsite language and cultural barriers
together to address any gaps.
workshops are being used to within Japanese companies there
Then it is about assigning the help develop heightened cultural are many challenges to overcome.
change agents from both sides awareness on both sides.
and expanding the team with
internal and external skills.

Most Japanese companies are focused on clear

delineation of roles and responsibilities. The roles and
responsibilities that exist across the organisation, it is
highly unlikely that those descriptions include areas
focusing on cultural issues’’
Jason Hayes, PwC

Unlocking Japan’s potential | 35

“If a non Japanese person takes PwC’s Jason Hayes says “ Tokyo PwC’s Aron Downey, with over 10
up the local CEO position, the management of returning expatriates years experience working with
question is how do they create a should also be more proactive in and for Japanese companies and
good relationship with headquarters, capturing and utilising the acquired institutions, has observed that
where the language is all Japanese?” skills of returning expatriates”. the most successful attempts at
PwC’s Ryosuke Sasaki says, cultural integration occur when the
adding that experiments among “Japanese companies don’t tend target company is engaged early
Japanese companies with making to value experience gained on in identifying the features that
English the key internal language international assignments. It have generated pride and success
have not often succeeded. is kind of dismissed and they within that organisation. When
go back into heavily domestic these elements are combined with
“Japanese companies want to focused roles.’’ he says. the most strategically relevant
promote local non Japanese components of the acquiring
executives to succeed and if they are “If they make the investment in
sending people abroad to expand Japanese firm, the best possible
really going to be global they need results are achieved. “Where there
to invite some of these executives their capabilities they should be
putting them in roles to support is a commitment to some adaptation
to senior management in the and learning on both sides, the
headquarters, but non Japanese the integration of newly acquired
companies or to support foreign best outcomes are achieved.”
executives are not yet willing to come
to Tokyo and finish out their careers.” management of subsidiaries. It is
about establishing an international
footprint and enhancing it.”

In April 2014. Mizuho purchased selective RBS assets

in North America. The portfolio was $US36bn and
there were 130 people who joined from RBS at the same
time. From the beginning there was strong recognition
by those driving the acquisition that the cultural fit
should be an important part of the due diligence. If it
is too difficult to integrate because of national culture
or corporate culture or both, sometimes it is better to
decide that this might not be a successful acquisition.
Mizuho leaders decided that RBS would be a good fit.
That decision was facilitated by the fact that Mizuho
has a strong view of its own culture and RBS also has a
strong understanding of their culture.”
Mizuho

If Japanese companies really want to become global

there are so many cultural issues to resolve at the
headquarters and there is just no easy answer yet.
Some companies use regional management where,
for example, a US executive can head a regional
headquarters and the same in Singapore or Europe”
Ryosuke Sasaki, PwC

36 | PwC
Where to begin
Achieving cultural alignment in The sooner the two sides work “People want to be on the same
organisations that have differing on bridging these gaps the better, page. It is incredibly important.
histories, cultures, geographical says PwC’s Angela Harris. Even in local mergers there are lots
territories and methods can of complexities and when you add
seem overwhelming. “It is about getting it right from the natural cultural traits on top of that,
beginning,’’ she says. “Investing the complexities are magnified.”
But as we have seen from the time upfront to understand
earlier sections of this report the cultural implications, and In truth the work are should begin
cultural alignment is vital to planning for them will achieve well before the transaction is finalised
the success of both parties. synergies earlier.” she says. and research is vital to understand
how big a cultural integration
challenge the transaction will entail.

Where culture aligns to the M&A cycle

PwC-sponsored research conducted Preparation to address cultural Ideally, companies acquiring
by the Economist Intelligence integration challenges needs subsidiaries should perform a
Unit found that Japanese buyers to begin well before the deal high-level diagnostic analysis of
sometimes fail to move quickly is even close to finalised. potential targets as part of the
enough to impose control on their selection process and drill down
acquisitions, losing the chance to set Companies must fit the integration deeper into that during the due
the culture they want to establish. mandate into the research and due diligence phase. Once the proposal
diligence effort so they start the is announced to market and to the
This research finds that Japanese integration process well before target, a cultural alignment plan
companies would be well served the deal is finalised. should be developed and shared.
to focus on the short term in Cultural integration activities must
the immediate aftermath of an Then the work of post-merger
be embedded in the acquisition integration begins.
acquisition and failure to act rather than included at the end as a
quickly can result in lack of control ‘check-the-box’ exercise that is too
over management at the target late or too shallow to achieve results.
company, destroying morale.

Culture assessments as a success factor in mergers and acquisitions

High level cultural diagnostic of target companies Presentation of cultural compatibility and
for compatible or desirable cultures through desktop transformation plan as part of explanation of deal
review (depending on rationale for acquisition and to firm and broader market (given the centrality of
degree of integration planned) culture alignment to make some mergers successful)

Opportunity First year

Due Post Merger
identification Deal offer
diligence Integration

Detailed HR due diligence can uncover areas to Comprehensive cultural integration plan focused on
investigate further for cultural alignment such as 3-5 critical behaviours
absentism patterns, rewards and benefit analysis,
return to work analysis, spans and layers in the Companies that do not focus upon culture at all, or
target company only focus on it when it becomes a larger problem in
the PMI stage are much less likely to derive the full
Companies that focus on culture assessments earlier benefits from the deal
in the M&A cycle (particularly when high levels of
integration are required) are more likely to avoid post
merger integration issues

Source: PwC M&A Expert Advice

Unlocking Japan’s potential | 37

38 | PwC
6. Hypothetical
case studies

Unlocking Japan’s potential | 39

 6. Hypothetical
case studies
Hypothetical Case Study – Fixing cultural
problems with a major acquisition
The situation: The company it bought was a listed
company that had a significant
• A large traditional Japanese trading
global focus and a more dynamic
house acquires a subsidiary in New
corporate culture. While the New
Zealand in the forestry industry
Zealand company believed it was
with existing export sales in
culturally aware and sophisticated
South East Asia to move closer to
through its acquisitions in Asia,
becoming a truly global enterprise.
it was almost totally ignorant of
• The New Zealand subsidiary has Japanese corporate culture.
a large and growing market share
• These differences soon translated
in Asia and is seen by the acquirer
into an atmosphere of mutual
as the solution to add scale and
mistrust and stagnation in terms
address declining revenue growth
of decision making and optimising
in Japan. It also allowed the
the performance of the subsidiary
company to have a presence in
and taking advantage of its sales,
China without having to buy or
production and manufacturing
establish a business there amid
network in ASEAN countries.
tense times between the Japanese
and Chinese governments. • A lack of detailed research
carried out in the New Zealand
• In line with normal practice, the
market meant there was a lack of
company took advice primarily
recognition of the extent of the
from Japanese advisors in relation
cultural integration challenge
to the acquisition before deciding
with the two companies’ views on
to acquire.
the global economic and business
The challenges environment differing significantly.

• Immediately after the purchase it • The tendency to seek out the

became clear how extensive the familiar and get advice from firms
cultural misalignment between it was used to dealing with instead
the two companies was given the of those with a detailed knowledge
parent company is a conservatively of the New Zealand firm and its
focused organisation although well industry meant the parent company
versed at doing business abroad was unprepared for the aftermath
is staunchly Japanese at its core. of the acquisition.

40 | PwC
Potential solutions
To remedy the lack of cultural Hypothetical Case Study – Building on
integration between the
two companies, the parent early integration success
company will have to make a
philosophical commitment to
learn from its acquisition and
The situation Success also requires consideration
of cultural awareness at
aim to instil the same mentality • A Japanese consumer credit
employee level and an open
in the New Zealand firm. company buys an 80 per cent
mind from all involved. While it is
stake in a US lender.
In this case, the firms would important for employees travelling
benefit from a culture-led • The parent company was overseas to be culturally aware,
transformation intervention attracted by the fundamentals of it is equally as important for the
to put the collaboration the economic and demographic receiving subsidiary/team.
back on course. This would picture in the US with
better GDP growth and an Cultural awareness training only goes
involve undertaking a cultural
expanding population. so far, people need to have genuine
diagnostic and working
experiences to be able to relate the
with leaders to design a • The acquisition offers the theory to practice. The companies
cultural integration or potential to offset population could also consider a formal
alignment initiative. decline in its home market. global mobility program to ignite
This should be followed by interchange of personnel and ideas.
The challenges
development of a detailed
• Even though the company PwC Australia’s Japan desk lead
cross-cultural strategy
will continue under existing and Global Mobility Partner Masao
developed across a series
management, there is always Kamiyama says a global mobility
of sessions taking in key
some apprehension in a post- program (with formal policies and
stakeholders from both
merger/acquisition phase, processes) is a valuable tool to enable
organisations. It is essential that
particularly on the part of companies to achieve business and
the framework that comes out
the acquired company. These growth strategies, share knowledge
of this process is communicated
concerns tend to be exacerbated and allow their workforce to develop
effectively across the combined
when the acquiring company a global mindset.
organisations.
is from another country with “When acquiring an overseas
The company can begin to starkly different cultural norms. company, business travel or
address insularity with a
• Similarly, from the acquirer’s international assignments are
global mobility program to
perspective there is a risk inevitable. Having a clear approach
rotate New Zealand employees
expertise and systems that have to mobility is important to enable
through the head office and
fuelled its success may not be companies to have the right people
Japanese staff into the New
adopted by the US if it takes a in the right place – with the right
Zealand company. This will
purely hands-off approach. support and ensure that risk,
help executives and staff to
• A failure to overcome the divide compliance and duty of care is
gain a better understanding
and achieve cultural integration correctly managed,’’ he says.
of different and optimal ways
of doing things in different could see missed opportunities “A mobility policy and process
countries and cultures, and and misunderstandings on will ensure that those going on
to better meet people and both sides. international assignment, in
customer needs. particular those from HQ to the new
Potential solutions subsidiary, are set up for success.
The challenge will then
Getting together to collaboratively Clear assignment objectives, success
be to embed talent and
plan cultural alignment solutions measures, a mentor, onboarding and
performance management
at a corporate level will be training procedures will impact the
practices across the company
necessary for both companies, to success of an international posting.
that work effectively for
ensure that the transaction is both Many companies do not consider
employees in both locations and
profitable and sustainable. creating or merging global mobility
from both cultures.
programs, policies and processes as
To avoid problems occurring Both sides should be encouraged part of the post merger integration
again in future acquisitions to work together to develop the activity. This not only creates risk
the company needs to invest in overall strategy for the business and compliance issues, but can lead
trusted advice outside of Japan and may benefit from facilitated to lack of transparency, inequity
from experts familiar with both cross-cultural strategy sessions. amongst employees and impacts
cultures who can explain what’s return on investment.”
needed in a culturally sensitive
manner.

Unlocking Japan’s potential | 41

42 | PwC
7. Conclusion

Unlocking Japan’s potential | 43

 7. Conclusion
Just as the impetus to invest abroad the energy, diversity and potential
for Japanese organisations will only that these acquisitions can bring.
grow in the future, the pressure for
them to reap greater synergies - both In this report, Unlocking Japan’s
culturally and financially - from Potential, PwC has set out our
these acquisitions will also grow. approach (developed through
own research and our shared
The potential of cultural integration experiences with Japanese
to safeguard and drive these returns companies and their leaders) to
means it will become ever more achieving cultural integration
important for Japanese organisations between Japanese companies and
to move beyond the days of bolt-on the businesses they acquire.
acquisitions that are only loosely
integrated into the core business. In It is an approach that doesn’t
this way, corporate Japan can build on seek to gloss over the differences
the many advantages it has in terms between Japanese companies and
of technology, capital, R&D, product foreign businesses, but utilises a
development, production standards deep understanding of the differing
and human capital and add to this dynamics to devise ways for
companies to overcome problems

44 | PwC
before they affect performance Even in local mergers where
and to also find ways to capitalise companies of the same nationality
on each others’ strengths. are brought together cultural issues
loom large and can often be the one
Indeed actively discussing these single aspect that derails the merger
different cultural traits is at and causes the synergies to be lost.
the heart of our approach, as is
increasing both communication As we have seen in this report
and collaboration, particular on there are no silver bullets or easy
the shared strategic goals. answers, and the journey can be
a long one, but it is possible and
Success will also depend on necessary to embark on the road
integrating expatriate employees into towards cultural integration and
the group and exposing head office the financial, strategic, and talent
employees to the global corporate acquisition benefits it brings.
environment. At the heart of this
sits mobility programs, and also
new measures to better define roles
and manage performance as well
as establishing feedback systems.

Unlocking Japan’s potential | 45

www.pwc.com.au

Contacts
As the global leader in professional services, PwC’s service offering continues to evolve beyond the
traditional areas of advisory services in an M&A context (such as taxation and legal, due diligence,
valuation, negotiation, procurement, communications and marketing) to include people and culture.

Jason Hayes | Partner Ryosuke Sasaki | Partner

PwC Australia PwC Japan
Phone: +61 407 232 142 Phone: +81 (0) 80-4851-8678
[email protected] [email protected]

Masao Kamiyama | Partner Angela Harris | Director

PwC Australia PwC Australia
Phone: +61 411 880 950 Phone: +61 8266 2239
[email protected] [email protected]

© 2017 PricewaterhouseCoopers. All rights reserved.

PwC refers to the Australia member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity.
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46 | PwC