This is a story about Ji Sen. That's a Japanese term, meaning putting theory into practice. Japan is changing the way it does business so it can have the money it needs to invest in productivity.What does that mean for Japanese corporations. The way they are structured and the way they finance those investments. There is a real corporate revolution going on.The notion of every company needing a plan to get above one times book and essentially using shame as a tool for reform has been very, very effective as ...

Corporate Revolution in Japan - Japanese corporations are undergoing significant structural and financial changes to enhance productivity and investment opportunities [1][2] - The concept of requiring companies to develop plans to exceed one times book value has been effective in driving management reforms [2] Changes in Corporate Governance - There is an observable shift towards more diverse boards and proactive decision-making among CEOs in Japan [3] - Companies are increasingly scrutinizing their listing status on the Tokyo Stock Exchange, with a notable rise in delistings from 50 to 125 last year, and 16 already announced for this year [5][6] Business Reorganization and Spin-offs - Japanese companies are beginning to spin off operations, with 280 spin-offs last year compared to none previously, indicating a serious commitment to reorganizing business portfolios [7][8] - Panasonic Holdings sold a majority interest in its automotive division to Apollo Global Management, resulting in a 70% increase in share value since the deal [9] Focus on Core Competencies - Companies like Panasonic are recognizing that they may not be the best owners of certain operations, leading to strategic partnerships that allow for a more focused approach [11][14] - The automotive sector is shifting from traditional driving performance to a broader mobility experience, reflecting changing consumer preferences [10][9] Transformation in Entertainment Sector - Sony is transitioning from manufacturing electronics to producing entertainment, with entertainment revenue growing from 30% to 60% of total revenue by 2024 [20][21] - The gaming sector is a significant focus for Sony, with major titles contributing to its revenue growth [22][23] Investment Strategies and Partnerships - Companies are seeking patient capital to support transformations, as seen in Sony's collaboration with Apollo for music catalog investments [27][29] - The partnership with Apollo is aimed at diversifying business and acquiring assets that align with long-term growth strategies [26][27]

Core Insights - The article discusses how top executives from various companies have navigated crises and transformed their organizations, emphasizing the importance of adaptability and strategic decision-making in uncertain business environments [1][2]. Group 1: Executive Strategies - Ted Sarandos of Netflix made a pivotal decision to invest $100 million in original content, marking a significant shift in strategy when licensing from studios decreased [3][5]. - Danny Meyer, founder of Shake Shack, created a fund to support employees during the pandemic after laying off 95% of his staff, demonstrating a commitment to employee welfare [6][7]. - Mary Barra, CEO of General Motors, prioritized safety and transparency following a crisis involving faulty ignition switches, fostering a culture of open communication [12][14]. - Dara Khosrowshahi, CEO of Uber, focused on rebuilding trust by addressing the company's internal issues and promoting a culture of change [16][20]. - Neal Mohan, CEO of YouTube, responded to a major advertising boycott by hiring thousands of human reviewers and investing in technology to manage harmful content, establishing a balance between free expression and community guidelines [21]. - Brian Chesky, CEO of Airbnb, took decisive action during a crisis by implementing a property damage guarantee, which evolved from $50,000 to $3 million, showcasing leadership in times of adversity [22][23]. - Barry Diller, chairman of IAC and Expedia, chose to proceed with a $1 billion acquisition of Expedia despite the 9/11 crisis, believing in the resilience of the travel industry [24][27]. - Marvin Ellison, CEO of Lowe's, focused on supply chain transformation and employee investment, which allowed the company to adapt quickly during the pandemic [28][30]. Group 2: Lessons Learned - Executives emphasized the need for a culture that encourages dissent and open dialogue to foster innovation and adaptability [5][6]. - The importance of making bold decisions during critical moments was highlighted, as many leaders faced existential threats that required immediate and decisive action [3][22]. - A common theme among these leaders is the recognition that crises can present opportunities for significant change and improvement within their organizations [19][20].