CFO Studio Magazine - Curt Allen, CFO, Subaru

1st QUARTER 2015 WWW.CFOSTUDIO.COM 35 studying the U.S. market to know if the market really needs this product?Will the market accept it and pay the price you’re commanding? I don’t know if it’s that some Japanese companies expect our markets to behave like markets in Japan or it’s just an over-optimism.” Louis Mattina, an unaffiliated senior finance and operational executive, agreed. “That sense of loyalty works across the board,” he said. “There is an incredible loyalty to business relationships in Japan, and that creates the softness in the analytics associated with bringing a product to the U.S. market.” Leadership’s Impact on Culture Sacco also discussed how top leadership shapes the culture of an organization. Several people offered comments. “If you’re asking should the culture start at the very top, I think the theoretical answer is yes,” said Albert Caamic, CFOof Mitsui Foods, a staple and specialty food product distributor. “Culture should come from the top, but the problem is that the people in the top positions change frequently, so there’s no stability.” Caamic was referring to the common Japanese business practice of rotating C-level executives every few years. AndrewZezas, publisher of CFOStudio magazine, CEOof Real Estate Strategies Corporation, and host of the evening’s discussion, spoke about an experience he had providing real estate advisory services for a subsidiary of a Japanese company. “Wemet with the American operations executives and presented our recommendations.The senior Americamanagement operations executive said, ‘You guys are great, it’s a real shame that we won’t be able to execute any of your ideas.’This particular company got a newCEO fromAsia every two years. When the newCEOwould come in, it took him sixmonths to figure out his role, so he wouldn’t make any decisions.The last sixmonths of the CEO’s tenure, he wouldn’t make any decisions because he didn’t want to trip up the next CEO.” JoanDaniels, vice president and CFOof Nippon Paint, USA Inc., spoke about how leadership’s ability to impact culture hadmore to do with individual personality than length of tenure. “Culture change is dependent upon the particular person that’s here from Japan,” saidDaniels. “You can get somebody here from Japan who stays fairly quiet for a few years and doesn’t make toomany changes, or you can get somebody else here who’s very dynamic and will start to really change the company quickly.” RobWeingartz, vice president of finance at ArrowFastener, amaker of manual, electric, and pneumatic fastening tools, lived as an American expat in Japan for three years while working for Black&Decker. He provided insight on culture from the inverse perspective. “It’s important to understand the Japanese culture and their expectations of respect and service,” said Weingartz. “Learning some basic Japanese phrases and proper bowing etiquette may help in developing relationships, which are very significant in Japanese business. Every situation is different, so try to gain advance insight if you will be dealing with someone who is comfortable with modern ‘Western’ behavior or someone who prefers traditional behavior. Make an effort, and it will usually be greatly appreciated.” Japanese Executives Looking to American Business Culture A year and a half ago, American Standard, manufacturer of bathroom and kitchen fixtures, was acquired by a Japanese company. Dinner guest Edward Manley, vice president and corporate controller at American Standard, provided a unique perspective to the discussion. The parent company acquired American Standard to help them create a global footprint and develop a more global culture. The U.S. executives are looked to by the Japanese parent to provide guidance and insight on operating in the West. Vincent Tuzzio, CFO at Samaserve, LLC, which provides sales, marketing, service and support for Nipros camera systems and accessories, has seen the same shift happening in his organization. “In the very beginning, our Japanese parent tried to set the tone for what we do here in the States,” said Tuzzio. “But when they found out we really didn’t fit into that model, they took notice of some of the business practices we followed. Now, they’re coming to us and asking about the current trends in the marketplace, and seeking our input on their technology and have co-developed some products. They are asking how we can change the products that they have and what they’re currently manufacturing to better adapt their products for American sales.” C Joan Daniels Vice President & Chief Financial Officer Nippon Paint USA, Inc. Joseph Giordano Vice President of Business Development Konica Minolta Medical Imaging USA, Inc. Fred Guerra Vice President of Finance Takasago International Corporation Barry Lederman Chief Financial Officer Eisai Inc. Edward Manley Vice President & Corporate Controller American Standard Louis Mattina Senior Finance and Operational Executive Albert Caamic Chief Financial Officer Mitsui Foods James Orsino Chief Financial Officer Konica Minolta Medical Imaging USA, Inc. Joseph Serell Vice President Sun Plastech Discussion Leader Meeting Participants Henry Sacco, Esq. Vice President & Chief Legal Officer, Brother International Corporation Robert Weingartz Vice President of Finance Arrow Fastener Vincent Tuzzio Chief Financial Officer Samaserve LLC Craig Bleifer, Esq. Vice President, General Counsel & Secretary Daiichi Sankyo The comments made by these guests are their own and may not reflect the opinions and/or policies of their companies or of CFO Studio, Real Estate Strategies Corporation, and/or its promotional partners.