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HBR On Strategy

How Rakuten’s Shift to English Transformed Its Culture

Aug 7, 2024
19:44
Snipd AI
Hiroshi Mikitani, CEO of Rakuten, Japan's largest e-commerce platform, and Tsedal Neeley, a Harvard Business School professor, dive into Rakuten's bold shift to English as its official language for global expansion. They discuss the initial resistance and productivity dips faced by employees, along with the long-term cultural transformation this decision ignited. The conversation highlights the importance of language in global strategy and the nuanced challenges of cross-cultural management in a rapidly evolving business landscape.
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Podcast summary created with Snipd AI

Quick takeaways

  • Rakuten's decision to adopt English as its internal language aimed to enhance global communication and alignment with international business practices.
  • The transition revealed cultural complexities and employee adaptability, showcasing how a shared language can facilitate collaboration across diverse workplace cultures.

Deep dives

The English Language Mandate

Hiroshi Mikitani, the CEO of Japan's largest e-commerce platform, Rakuten, implemented a bold mandate requiring all employees to conduct business in English to support the company's rapid globalization. Employees were required to achieve proficiency in English within two years or face demotion, creating significant upheaval within the organization. This decision aimed to align Rakuten with global business trends, emphasizing English as the prevalent lingua franca for international commerce. Despite initial challenges, such as loss of productivity and employee skepticism, this shift catalyzed an eventual cultural transformation within the company, facilitating broader global communication.

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