Case Study #3
Succession for a Japanese Plastics Processing Company
A retained succession search for the retiring owner-president of a publicly-traded Japanese plastics manufacturer.
Consultant: Mike Nagata
Background
A Japanese company specializing in industrial plastics processing, with a workforce of around 1,000 employees both domestically and internationally, had expanded into Asia and the United States. Despite being publicly traded, it was essentially owner-managed, with the current president being the founder’s son.
At age 60, he decided to retire and sell the company to a fund. At the same time, he set out to find a successor, and we were assigned to conduct a retained search.
The Challenge
The brief carried an unusually broad set of expectations:
- High expectations — The owner had exceptionally high standards, seeking a “superman” for the role.
- Operational complexity — Three manufacturing plants in Japan and two overseas made manufacturing operations critical.
- Sales importance — Given the diverse and competitive market channels, the sales department was crucial to the company’s success.
- Market expansion — Beyond maintaining existing customers and markets, there was a need to explore new demand.
- Employee development — It was essential to utilize and nurture promising internal employees who could become future executives.
- Leadership — With many young employees, strong leadership was essential.
- Cultural shift — Transitioning from a one-man leadership style to a more inclusive approach required a shift in company culture.
- International experience — Given the expansion of overseas business, the new leader needed international business experience.
The Solution & The Result
- Realistic expectations — Through repeated discussions with the owner, we shaped a more realistic profile of the desired candidate.
- Candidate selection — We identified candidates who met the requirements from various perspectives, narrowing down to four finalists.
- Evaluation process — After interviews conducted by the owner, we discussed and evaluated each candidate together.
The Final Candidates
- Candidate A — A former senior executive who transitioned from a major trading company to a global chemical company, with experience in sales, manufacturing-subsidiary management, and leading development projects in Asia.
- Candidate B — A technical expert with experience in manufacturing and as a business-unit head at a foreign petrochemical company, who then served as a plant manager at a major foreign pharmaceutical company.
Candidate A was appointed as the successor to the president, while a new role overseeing the manufacturing and technical departments was created for Candidate B.
Lessons Learned
- Professional input — It is crucial not just to accept the client’s demands at face value but to provide professional opinions and suggestions as a human-resource consultant.
- Comprehensive evaluation — Evaluating candidates from various angles is essential to identifying the best fit for the company’s needs.
- Balanced perspective — While we are employed by the hiring side, it is also important to consider the candidate’s perspective to ensure a mutually beneficial match.
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