Evolution of HR Practices in Japan

Japanese HR departments are in a bit of a panic right now. The increasing job mobility that startups have unleashed is forcing them to rethink their entire mission. Today we sit down and Takako Ogawa, co-founder and CEO of Panalyt, a startup at the center of this transformation, and we talk about the changing career paths in Japan, when startups need to change CEOs, and the dangers of going global that people don't seem to talk about. It's a great conversation, and I think you'll enjoy it. Show Notes Why it's so hard for HR to answer simple questions Google’s approach to people analytics and why that's important in Japan The dangers involved in the freemium model Why a Singapore-based startup started focusing on Japan Why it's better to build a startup today in Japan rather than Singapore How to change a startup CEO The importance and danger of transparency in a startup The problem most enterprise SaaS dashboard startups never overcome The right way for a startup to go global HRs new mission in Japan and its struggles to fufill it Why your next head of HR might come from marketing How Japan punishes failure Takako's near "career-ending" mistake in corporate HR that put her on the path to entrepreneurship Links from the Founder Everything you ever wanted to know Panalyt Friend Takako on Facebook Panalyt's column in HRPro about modern HR in Japan [Japanese] Panalyt's book on modern people analytics [Japanese] Transcript Welcome to Disrupting Japan. Straight Talk from Japan's most successful entrepreneurs. I'm Tim Romero and thanks for joining me. Japanese HR departments are in crisis right now. Oh, life was simple back in the good old days when the big firms all recruited straight out of university and employees stayed with the company until they retired. But things are changing in Japan. People are starting to switch jobs. Companies are hiring mid-career and startups? Well, startups are a source of employee mobility, that is forcing enterprise HR to completely rethink its entire mission. Today we sit down and talk with someone at the center of this transformation, Takako Ogawa, co-founder and CEO of Panalyt, a startup bringing modern people analytics to Japanese HR departments. But that was not always the case. Takako was not always the CEO and Panalyt, was not always a Japanese startup. So, Takako and I talk about that journey. We'll dive into how you know when a startup needs a new CEO, how to decide on your first overseas market including a few big mistakes that you should be sure to avoid. And the very important difference between having a global mindset from day one and actually being global from day one. But, you know, Takako tells that story much better than I can. So, let's get right to the interview. Interview Tim: So I'm sitting here with Takako Ogawa, the co-founder and CEO of Panalyt, who's bringing modern people analytics to Japanese enterprise. So, thanks for sitting down with us. Takako: Yeah, thank you. Tim: It's really great to have you on the show. But just for a background, what is people analytics? Takako: So, in a nutshell, how I see people analytics is taking a scientific or data approach to HR, kind of in the same way that when you build a new product, you do AB testing, or when you're building financial models, you test out a lot of things in numbers. And the super exciting thing is in the people space, now we can do this as well. Modern enterprises who uses a payroll system, a time and attendance system, HRIS, they have enough data to make data-driven approaches to people. Tim: So, data-driven is good. We all like data, but what kind of decisions are these companies making? What are they improving? Takako: I can definitely share some of the experiences at Google because back when I was there, we used data in everything. Like everything. I was astonished by how Google approached HR and that's what got me...