Reviewed, rebranded and re-launched
Since its inception in 1979, the Executive Training Programme (ETP) has helped scores of European companies navigate the choppy waters of business in Japan.
After a brief hiatus, the new improved ETP has been re-launched. Organisers and alumni alike believe this will create even greater opportunities for Japan, Korea (the ETP was extended to include South Korea in 2002) and the EU.
The roots of the ETP can be traced back to a time when Japan was establishing itself as an economic superpower, spearheaded by the likes of Sony and Toyota. At that time, foreign executives found themselves thwarted not only by Japan’s infamously closed markets, but also by the language barrier, a cultural chasm and a dearth of expertise regarding local business practices.
Three decades on, the ETP has gone a long way towards bridging that gap, bringing long-term rewards for programme alumni and their Japanese and Korean partners. The programme has gained considerable prestige and, according to the EU, gives companies that participate in it a competitive advantage over those that do not.
For Japan, the revised programme begins with a three-week introductory course at the School of Oriental and African Studies, London University, where participants learn about Japan’s historical, social and cultural background. That is followed by a 30-week language and business training course at Waseda University in Tokyo, then a 12-week internship at a Japanese company. EU funding covers all the training and €2200/month for Japan (€2000/month for South Korea).
Nicolaos Zaimis, first counsellor and head of the trade section at the Delegation of the European Union to Japan, says the programme has brought tangible results.
Twenty years ago, Japan was considered a very closed business environment,” he says. “The linguistic barriers were insurmountable. That’s where the real benefit of the ETP lies, in giving participants language training with a view to working in Japan, and at the same time becoming ambassadors for their companies.”
So far more than 800 firms in 20 sectors have sent executives to take part in the programme.
“Amazingly, some of the first batch of people who joined ETP 30 years ago are still in Japan,” Zaimis says. “The consensus is that this is a good programme and we want to continue with it.”
Zaimis is convinced that without the programme some European firms would have had little to show for their efforts to carve out a presence in Japan.
“Bigger players would not have suffered, but small and medium-sized companies would not have had the strength or the time to learn these skills alone,” he says.
That view is supported by statistics. On average, ETP participant companies see their Japan-related business turnover increase twofold, while alumni salaries rise 350% within 10 years of completing the course, according to the European Commission. In addition, more than 65% of ETP alumni have gone on to become top executives at their companies.
One such graduate is Michel Lachaussée, president of Merial Japan, the subsidiary of an animal healthcare company headquartered in France.
“If you arrive as an expatriate and become operational from day one, you have no time to really learn Japanese and you can never use it for business purposes,” he says. “For businessmen who never studied Japanese, ETP is the best opportunity to learn. It is also an excellent programme to learn how to do business in Japan.”
Lachaussée says he used his ETP experience to set up sales activities and distribution networks at his company’s Japanese subsidiary. Would he recommend the course to fellow professionals?
“Yes, of course,” he replies. “It’s the best preparation for expatriates planning to work in Japan if their company plans a long-term future here.”
The target for the upcoming cycle is 45 participants for ETP Japan and 15 for ETP Korea. The application deadline for European nationals sponsored by EU-based companies, via www.euetp.eu, is 31 May.
At Waseda, participants learn Japanese, visit companies, develop business plans and – in order to put into practice what they have learned – apply for a three-month internship with a local firm. The course takes in a wide variety of subjects, from accounting and marketing, to economic policy and human resources management.
Jusuke JJ Ikegami, the ETP academic coordinator and associate professor at Waseda University, Graduate School of Commerce, believes the learning component’s beauty lies in its multifaceted, yet well-structured nature. “The alumni can also leverage the Waseda brand and network,” he says. “Usually it is quite difficult to open that first door to doing business in Japan, and in some cases the Waseda brand and alumni network can help ETP alumni to open that door.”
The organisational structure and business culture in Japan can be difficult for non-Japanese to understand, and Ikegami believes that failed initiatives can often come down to something as straightforward as talking to the wrong person. Foreign executives meet the section manager of their would-be Japanese partners, often several times, and think everything has gone well.
“Then nothing happens,” he says. “But if they understand how to read good and bad signs, they are in a much better position to know what the next move is. It stops them from wasting valuable time.”
The 30-45 ETP participants who arrive at Waseda every year come from diverse backgrounds, from banking to manufacturing and sales. Some are in their early twenties, while others are in their forties and looking for a mid-career change. The number of firms from eastern Europe enrolling young entrepreneurs has grown in the past five years or so, according to Ikegami. Also, reflecting the geographical reach of Japanese companies, more ETP students are showing an interest in firms with a strong presence in third countries such as China and India.
Despite taking a year out from their regular jobs, ETP alumni are united in their belief that they return to their parent companies with the know-how to open doors in Japan that might otherwise have remained closed.
That view is shared by European Commission officials. The latest group of ETP participants will arrive in Japan next January, against a backdrop of quickly evolving ties and a mood of optimism. Perennial barriers notwithstanding, the commission recently forecast that European companies trading with Japan and South Korea could earn new export opportunities worth €20-40 billion euros a year by 2020.
“As two of the largest economies in the world, these markets offer a wealth of opportunities to European businesses,” says Tung-Lai Margue, Director, Head of the service for foreign policy instruments at the European Commission. “The ETP is uniquely positioned to enable European businesses to unlock the potential of these complex and idiosyncratic markets.”
Guillaume Desurmont, general manager for the Asia-Pacific at Arkema, a French firm specialising in vinyl products and industrial chemicals, believes the onus should be on foreign executives to learn and adapt to those idiosyncrasies.
“I would say the key to success in Japan is to be patient,” he says. “If you put the effort in, you will succeed. Success in Japan comes over the long term. It requires effort, and you have to explain that to your headquarters back in Europe. But on the other hand, you will end up with a long-lasting business presence. It’s not like China or India where it is possible to get things done, but you can still emerge the loser.”
Michael Loefflad, representative director and president of Wuerth Japan, also chairs the ETP alumni network in Japan, notes that language is just one of the assets imparted by the programme.
“Through ETP, we learn about the Japanese taxation system, labour laws, political system, and how to establish a company and then run it successfully,” he says. “Plenty of EU companies would not be as successful in Japan if not for their ETP alumni.”
Stronger look, sharper focus
Thierry Fournier, the European Commission’s ETP project manager, explains the programme’s evaluation and redesign, which began in 2010.
“The aim was to simplify the programme,” he says. “Previously, four universities provided training during the inception phase in Europe, and participants were required to move from one to the other over a short period. Now, in Europe, we work only with the University of London.”
In addition, under the direction of programme partner Deloitte Consulting, ETP was rebranded, with a single distinctive, more businesslike, logo replacing several.
The revised programme has a sharper focus on practical skills. The language component, for example, is oriented more toward practical business communication, including negotiation skills.
ETP now also offers more to sponsors, by solving the problem of having participants drift away after a year of intensive work beyond the sponsor’s influence.
“Now, the participant has to write a draft business plan, which we can use to also assess the intention of the sponsoring company to develop its own activities in Japan,” says Fournier. The participant must develop the business plan during training, and by graduation will be in a position to help the sponsoring company achieve more in Japan.
“We hope that participants can begin negotiations with potential Japanese partners during the training period,” adds Fournier.