J@pan Inc Newsletter<br>The 'JIN' J@pan Inc Newsletter<br>A weekly opinion piece on social, economic and political trends<br>in Japan.<br>Issue No. 467 Wednesday May 28, 2008, Tokyo<br><br>-----------------------------------------------------------<br>
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More about PBXL: <a href="http://www.pbxl.jp/aboutus2" target="_blank">http://www.pbxl.jp/aboutus2</a><br>-----------------------------------------------------------<br><br>Schindler Japan: Going Up?<br><br>Global elevator and escalator manufacturing giant, Schindler <br>
came to Japan in the late 1980s, entering the market via the <br>acquisition of Nippon Elevator Industry Co Ltd. Its business <br>here expanded and by the millennium, the company had made real<br>inroads into the market - launching the Japan market specific <br>
Schindler 300J in 1997 and winning the elevator system contract <br>for the Millennium Tower in 2000.<br><br>And then, in 2006, disaster stuck. A 16-year-old boy was killed <br>in an elevator installed by Schindler. The company was slammed <br>
in the Japanese press and could face legal repercussions. The <br>facts of the accident are contested but there is arguably a <br>strong case to be made in Schindler's favor. For one, they had <br>lost the maintenance contract on the lift in question, prior to <br>
the accident, to a cheaper service provider. However, despite <br>ambiguity over the facts and culpability, there is no doubt that<br>the handling of the crisis was a PR catastrophe. Gerhard <br>Schlosser, who took over as Representative Director in <br>
early 2007, told us: 'There was definitely a problem with risk <br>management at the time and we have learned a number of lessons. <br>The number one problem was that we did not offer proper <br>condolences to the bereaved family after the accident.'<br>
<br>This key point also became a main focus for the media. In other <br>markets, an outright apology could be seen as an admission of <br>guilt - in Japan, it is not only expected, but the wording and <br>nature of that apology is extremely important. According to <br>
Schlosser, this blunder backed the company into a corner from <br>which they couldn't escape - it would come up again and again in<br>reports that sought to portray Schindler as negligent, <br>cruel-hearted and evil. The facts of the actual accident seemed <br>
to become less relevant than the reaction to the tragedy. <br><br>In terms of business, the fallout was very damaging. Staff left,<br>sales froze and a police investigation got underway. To compound<br>matters the organization went into panic mode, flying out people<br>
from headquarters in Switzerland to manage the situation which, <br>in doing so, sidelined the local management. For Schlosser, this<br>was another serious problem, 'employees were getting the <br>information from the media and not from the company. There was <br>
a lack of internal communication that was very damaging.'<br><br>Since then many of the personnel have changed and the company <br>has had to be creative in terms of its recruitment strategy. <br>With 18,000 units operating in Japan, the company's work here <br>
is too large to warrant going home - even without any major new <br>contracts it is obliged to deliver maintenance and deliver on <br>existing projects. Schlosser has had to find candidates who are <br>aware of Schindler's good international reputation and look for <br>
individuals who have had less traditional educational histories <br>than those demanded by major Japanese corporations. He has also <br>worked hard to instill a sense of pride among employees and, <br>leading by example, he and the management team wear the company <br>
logo embroidered on their shirts. <br><br>Looking to the future, despite the accident, there have been <br>some interesting developments. Schindler installed a number of<br>escalators on the Toei Oedo subway line and worked on projects <br>
in Tokyo Midtown. Most recently, the company installed all <br>escalators on all 13 stations of the Nippori-tenori Liner, a <br>new transport system that opened in March this year. Until the <br>official inquiry is over however, the company is remaining quiet<br>
in terms of its approach to media, neither rebutting nor <br>responding to statements while continuing to hold its head up <br>high on the job. In particular, Schlosser hopes that more and <br>more Japanese will come to learn of the company's achievements <br>
abroad particularly as it works on major projects in the region,<br>such as the International Commerce Center in Hong Kong that will<br>be completed in 2010. Ultimately, Schlosser sees that the <br>company does have a future in Japan and the lessons it has <br>
learned will be pivotal in building it.<br><br>Peter Harris<br>Editor-in-Chief<br><br>DON'T MISS the extended version of this article in the next<br>J@pan Inc magazine, July, 2008. <a href="http://www.japaninc.com" target="_blank">www.japaninc.com</a><br>
<br>++FEEDBACK<br>Want to comment? It is now even easier to voice your opinion<br>than ever before! Simply post a comment below this article at:<br><a href="http://www.japaninc.com/jin467" target="_blank">www.japaninc.com/jin467</a><br>
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<br>--------NEW GADGET BLOG: TEKRONOMICON.COM------------------<br><br>In collaboration with Gadget Watch, Gadget blog Tekronomicon<br>offers a detailed look at select gadgets - shiny and strange,<br>from gizmo ground zero in Tokyo.<br>
See the gadgets introduced in Gadget Watch,<br>with photos and more at: <a href="http://www.tekronomicon.com" target="_blank">www.tekronomicon.com</a><br><a href="http://www.japaninc.com/gadget_watch" target="_blank">www.japaninc.com/gadget_watch</a><br>
<br>-----------------------------------------------------------<br><br>++EVENTS<br><br>-----------------------------------------------------------<br><br>Start a Company in Japan<br><br>Entrepreneur's Handbook Seminar 31st of May, 2008<br>
<br>If you have been considering setting up your own company,<br>find out what it takes to make it successful.<br>Terrie Lloyd, founder of over 13 start-up companies in Japan,<br>will be giving an English-language seminar and Q and A on<br>
starting up a company in Japan.<br>This is an ideal opportunity to find out what is involved,<br>and to ask specific questions that are not normally answered<br>in business books.<br>All materials are in English and are Japan-focused.<br>
<br>For more details:<br><a href="http://www.japaninc.com/entrepreneur_handbook_seminar" target="_blank">http://www.japaninc.com/entrepreneur_handbook_seminar</a><br><br>---------- Metropolis and eigoTown.com Party --------------<br>
<br>
Metropolis-Tokyo's favorite lifestyle magazine and<br>eigoTown.com - Japan's premier English language learning<br>website - join together on June 14, 2008 to bring you<br>The Metropolis and eigoTown.com Party.<br>
<br>Roppongi hotspot Alife will host over 500 revelers for an<br>evening of fun with people from different backgrounds<br>coming together to eat, drink and make friends!<br><br>Tel: Metropolis(Will Thompson) 03-45502759.<br>
Nearest stn: Roppongi. <a href="http://www.metropolis.co.jp/party" target="_blank">www.metropolis.co.jp/party</a><br><br>CORPORATE SPONSORS WELCOME<br>-----------------------------------------------------------<br><br>250 Bilingual JET candidates looking for work<br>
<br>The JET Programme Alumni Association of Eastern Japan <br>(<a href="http://www.jetaa.com" target="_blank">http://www.jetaa.com</a>) has its annual job fair <br>(<a href="http://www.tokyojobfair.com/" target="_blank">http://www.tokyojobfair.com/</a>) at the Tokyo International <br>
Forum on June 14th from 13:00-18:00. <br><br>Target more than 250 registered bilingual foreigners completing <br>their contracts and former JETs, many of whom have had a wide <br>range of experience. Sponsors will have exposure to the whole <br>
JET and JET alumni community.<br><br>Current and former JET Programme (<a href="http://www.jetprogramme.org/" target="_blank">http://www.jetprogramme.org/</a>) <br>participants are invited as candidates. <br>Tel. 03-4550-1524 / Mobile. 090-9674-7312 or E-mail: <br>
<a href="mailto:info@tokyojobfair.com" target="_blank">info@tokyojobfair.com</a><br><br>-------------------- ICA Event - June 25 ------------------<br><br>Speaker: Henry Ng, Head of Professional Security Services<br>-Asia, Verizon Business<br>
<br>Topic: Bridging the Security Management Gap:<br>How to Move from Point Solutions to Process<br><br>Details: Complete event details at <a href="http://www.icajapan.jp/" target="_blank">http://www.icajapan.jp/</a><br>(RSVP Required)<br>
Date: Thursday, June 25, 2008<br>Time: 6:30 Doors open includes light buffet<br>Cost: 4,000 yen (members), 6,000 yen (non-members)<br>Open to all-venue is The Foreign Correspondents' Club of Japan<br><a href="http://www.fccj.or.jp/aboutus/map" target="_blank">http://www.fccj.or.jp/aboutus/map</a><br>
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