株式会社リヴァンプ代表取締役 玉塚元一氏 インタビュー
New hope for the down and out
Ex-Uniqlo head strikes out on own with turnaround firm
By SHINICHI TERADA
Staff writer
Genichi Tamatsuka is a high-profile business figure in Japan. He is also a role model for many young businesspeople here due, no doubt, to his goal-oriented drive and perhaps, in no small part, to his good looks and charm.
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| Genichi Tamatsuka, a high-profile business figure in Japan, stepped down as the president of Fast Retailing last year to set out on his own with the corporate turnaround firm Revamp Corp. |
Last October, after leaving Fast Retailing two months earlier, Tamatsuka "shut the door on his past" and started, along with the former vice president of Fast Retailing Takashi Sawada, a corporate turnaround company called Revamp Corp.
The 44-year-old Tamatsuka says, "I wanted to become a business owner so that I could manage businesses. I wanted to work with client's employees and help struggling companies recover. And I wanted to develop myself further as a business leader."
The Tokyo-based Revamp is specializing in corporate turnarounds and corporate growth as well as helping non-Japanese startups get a foothold in the Japanese market. Tamatsuka is convinced his turnaround business is a much needed one. Despite the recent economic upswing, on a micro level, many companies have failed to recover from stalled earning growth. Already, Tamatsuka says, Revamp receives more orders than it can handle.
Revamp blends both Western and Japanese business styles, rather than just importing a Western style, which tends to focus on short-term capital gains for investors. Unlike the recently booming corporate reconstruction businesses, Tamatsuka says his business revitalization firm does not aim at capital gain. He claims the purpose of his entering "on the spot" is to work for employees and companies, not for investors.
"Gaining ownership means I will be taking more risk in helping ailing companies revive," Tamatsuka explains. This is in contrast to his time at Fast Retailing, where Tamatsuka was what he calls a "hired president."
Japan's pursuit of quality and precision craftsmanship in its manufacturing, a focus generally believed to be the economy's supporting pillar, is part of an overall manufacturing philosophy underscoring the importance of direct interaction.
Tamatsuka's fondness of the "on-the-spot" style was probably established during his time working at the factory of glass-products maker Asahi Glass Co. after college. There, Tamatsuka says, he learned the basics of manufacturing from factory production and inventory control to delivery from producers to end-users.
Tamatsuka says he dreamt of starting his own company from the time he was in his 20s. In his mid 30s, he earned a master's degree in business administration from Thunderbird University. He believes that much of his entrepreneurial thinking may have been nurtured in the days spent in the United States.
In the past, he points out, Japanese companies largely employed a cross-shareholding system, which made it difficult to monitor a company's management. U.S. investors, on the other hand, would pressure management to raise the company's value. When foreign capital floods into Japan in the future, Tamatsuka predicts, Japanese companies will come under this same pressure. He says he would rather be a business leader in his own right rather than someone who climbed up a corporate ladder.
Revamp holds some shareholding voting rights in order to control corporate governance. This means Revamp gains ownership. It then sends directors and other top executives to its client companies. There, problems are identified by questioning customers, employees and executives. Business plans are then mapped out and executed.
As of the end of May, Revamp is overseeing eight companies along with the fast-food chain Lotteria Co.: American-based ice cream chain Cold Stone Creamery, Inc.; shoe wholesaler Tohkutsu Co., which is teaming up with Goldman Sachs (Japan) Ltd.; amusement facilities operator Next Japan Co.; mineral water delivery WaterNet Co.; car parts decoration and character goods seller e-Revolution Co.; hats and clothing wholesaler Alps Kawamura Co., also teaming up with Goldman Sachs (Japan) Ltd. Revamp is also preparing to launch the Japan operation of Krispy Kreme Doughnuts, Inc.
Revamp's first project began this January with the revival of Lotteria. Tamatsuka has appointed himself Lotteria's chairman and chief executive officer and aims to build its brand image and direction. He is looking to make the company profitable in less than three years and distinguish Lotteria from the competition in three to five years.
Tamatsuka believes in an "on-the-spot" style in all matters related to his management of the Lotteria chain, including product lineup, employee discipline, store atmosphere and cleanliness, and inventory control. He also believes the key to success depends on management teams. "It is impossible to do everything yourself. It's more important to organize a good team, motivate its members and lead them," he says. A good team leader, in addition to holding ownership, must be prepared to face and resolve all risks. The leader also needs to have passion directed toward a goal. Passion and faith are key factors, he emphasizes, in beating the competition.
"You have to keep taking on new challenges and experiencing failure as well," Tamatsuka advises. "Jump into the ocean or into a competitive environment and struggle there for a couple years. Tough experiences make you stronger." One must never forget, he says, that time is finite. "You have to grab hold of opportunity."
