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Yoshizawa:Please tell us about the background to the establishment of the Joban Hawaiian Center, as it was called then.
Sakamoto:The origins of the Joban Hawaiian Center can be found in the Joban Mine. The Joban Mine was located in an area that spans both Iwaki-shi in Fukushima Prefecture and Kitaibaraki-shi in Ibaraki Prefecture. It became Japan's largest mine in 1944, when the two existing mines were merged in accordance with national policy. The golden era of the Joban Mine came in the late 1950s. Mines in general, supported by Japan's rapid economic growth, enjoyed considerable prosperity, with coal--referred to sometimes as "black diamonds"--becoming the pillar of the energy industry. In the early 1960s, however, the so-called energy revolution began and the source of energy quickly shifted to oil, thus putting the livelihoods of 12,000 mine workers and their families at risk. Mr. Yutaka Nakamura, who was then vice president, came from a mining town in another prefecture (Saga) and felt more passionately about mines than most people do. Because of his love for mines, he had a strong desire to somehow extend the life of the Joban Mine, but when he made an objective determination as a businessman, he could see that the future of the Joban Mine would be limited. Believing that even if the life of the Joban Mine could be extended by five or ten years, it would have no future beyond that, so he searched for new business opportunities.
Yoshizawa:Where did the idea for the Hawaiian Center come from?
 Sakamoto:
Former President Nakamura traveled to mining countries around the world--including Germany, the United Kingdom, and the United States--looking for ideas about new businesses, but he found nothing promising. He made two tours, following almost the same route, but in the end his efforts were nearly in vain. As he made his way back to Japan with a sense of dejection, he stopped in Hawaii to take a rest, where he got a big hint. In an instant, the wonderful spaciousness and warmth of Hawaii and the rhythm of percussion instruments that reminded him of a village shrine festival gave him the idea of creating a Hawaii in Japan using Joban's geothermal heat and hot springs. This is what I was told. He also seems to have calculated that if travel would become freer in the future, ordinary people would become accustomed to traveling overseas, and would thus be attracted to a simulated oversees experience provided inside Japan. After returning to Japan, he filled 10 large-sized notebooks with his plans and designs and pressured the Board of Directors to accept his proposal. According to one anecdote, no one else understood the meaning of his proposal and he received only blank stares, so he simply said, "I'll consider a lack of a response as agreement" and left the room.
Yoshizawa:Was there any uncertainty in former President Nakamura's mind?
Sakamoto:Actually, at about the same time that Mr. Nakamura began refining his ideas for a new business, his right-hand man, the general manager of the Technology Division, proposed an investment plan to extend the life of the mine. Although usually mild-mannered, Mr. Nakamura apparently shouted, "I won't listen to it! Get out of here!" He loved mines more than anyone else, and he later recalled that if he had seen the proposal to expand the life of the Joban Mine he would have gone along with it, and the Joban Hawaiian Center would never have been created. This must have been an extremely difficult and lonely decision for him. In our documents for the proposal at the time, it was written, "If this project does not succeed, there will be no tomorrow for Joban." Recently, this phrase has largely fallen out of use, and I miss it.
Yoshizawa:Were the employees very supportive of the shift from the mining business to a service business?
Sakamoto:Everyone from management to mine workers worked intensely on the project. In the coal mines, there was an expression: "one mountain, one family." The mine operated at full capacity, 24 hours a day, 365 days a year. When workers came out of the mine, they would sometimes drink and get into quarrels. In the mines, however, if any one person performed his work carelessly, this would put the lives of everyone at risk. There was a strong sense of unity in both work and private life. Thus, the idea of "one mountain, one family" has been handed down like DNA to become an important source of psychological support. To give an example, if one company in the group is faced difficulty, other group companies would rush to support it, and this spirit remains today. In addition, there is a unique style of conduct that could be called the "Joban culture." The value of indigenous qualities, family, local ties, and a sense of honesty takes priority over everything else. Everything that we have accomplished so far has been thanks to the hard work and honest spirit of our employees, supported by our corporate culture, and for this I am truly grateful.
 Yoshizawa:Did entire families of employees work at the Joban Hawaiian Center at that time?
Sakamoto:Yes, they did. There were many families where every member worked at the Center, with, for example, the father working in facility management, the mother working in a restaurant, the son working at the front desk, and the daughter serving as a hula dancer. At that time, we had a Labor Division, which had profiles on 50,000 employees and family members, which enabled it to place personnel in optimal assignments. Tall, good-looking, younger workers were assigned to the front desk; a man who sold miso and soy sauce at the mine was assigned to a shop; a woman known for her good cooking was placed in a restaurant; and so on. After having difficulty looking for people good at sales, they happened to find qualified personnel nearby. They were all from the labor union, which had given the Labor Division a lot of trouble. Representatives of the labor union were quite eloquent because they were negotiating year-round. The head of the labor union later became general manager of the Sales Division. That's a true story.
Yoshizawa:Was there any opposition from the employees?
Sakamoto:There was some confusion, of course. Even at job briefings, workers initially looked bewildered. Once it was explained that the "front desk" is a reception desk and that the "restaurants" are like cafeterias, however, the employees would often laugh, saying, "You should have just said so from the beginning." Before opening, we asked well-established hotels throughout the country to accept our employees as trainees. I hear that every day the seconded employees studied hard late into the night. Former President Nakamura received many letters praising the employees. When foliage plants from warmer climates were about to die from cold temperatures, many families lent space heaters to keep the plants warm even though the company had not made such a request. Their willingness to do so, without even thinking about the cold in their own homes, is an example of their straightforward commitment from a sense of honesty. Everyone helped each other and worked with single-minded devotion. Everyone worked fiercely at their new jobs in the true spirit of "one mountain, one family."
 Yoshizawa:How was the famous hula dance groupe attracted to the Center?
Sakamoto:We are particular about implementing something we call "hands-on management." Rather than inviting a hula dance troupe to the Center, we created our own. Having hula dancers was former President Nakamura's idea. He earnestly asked a Japanese hula instructor that he happened to see on television to instruct our troupe, and the instructor agreed. This too was a strange coincidence. The first dancers were 18 daughters of employees who had just graduated from middle school. Under the company's direction, the fathers remained in the mine and the daughters were sent to become dancers after a crash course. It was just like factory girls several decades ago. When they took the stage, there were no smiling faces, but seeing their perspiration as they danced their hearts out in front of all the families inspired and encouraged everyone. It was truly an emotional moment. The general manager of sales urged the sales representatives to "attract customers to reward the dedication of those girls." At that time, the hula dance troupe was a symbol of the spirit of "one mountain, one family."
Yoshizawa:Did experts create the overall concept for the facilities?
Sakamoto:No, this too we thought of ourselves. We were bolstered by the praise of our customers, who said that we were far from polished but we did our best as a team of novices. The customers liked to the rustic and unsophisticated atmosphere, and the natural feeling provided. Even today, it is a somewhat mixed facility, with Hawaiian, Roman, and rustic aspects. Indeed, we do obtain proposals from consultants, but we do not adopt them simply as they are. The purpose of creating the Joban Hawaiian Center was to create facilities where young people can enjoy healthy leisure time and the general public can enjoy themselves in their everyday casual clothing. We want to create a place where whole families can have fun without parents having to spend a lot of money. If we liken the Center to Tokyo, the atmosphere is more like Asakusa or Okachimachi than Aoyama or Roppongi. I believe those customers who are seeking a chic, upscale experience should simply go elsewhere. We've joked with consultants that "it might be hard for us to maintain our un-chic quality."
Yoshizawa:As soon as they enter the facilities, people can feel the human warmth.
Sakamoto:This is the result of our commitment to doing everything ourselves. The hula dance troupe is a good example of this. Rather than hiring professional dancers, we created a dance school to train employee family members how to dance. One good thing about the mining industry is that we formed a complete community on the mountain, and we had craftsmen in every field. As a result, we created everything we needed by ourselves. And precisely because things were handmade, we were able to constantly work to improve them, cooperate with each other for such improvements, and obtain a sense of accomplishment and fulfillment. Everyone has probably been able to work hard mainly because they created everything themselves without relying on others. I think that this is a type of personal development. A team of novices has created everything, and as a result there have been many failures. But I do not at all think that this is a bad thing. Our facilities will likely become more modern over time. This may present a more polished image, but I believe that the true value of service is in sincere hospitality. We would like to make every effort to prevent things from becoming formal, impersonal, and cold.
 Yoshizawa:Did former President Nakamura's management philosophy have an impact on everyone's conduct?
Sakamoto:Mr. Nakamura would frequently say two things. One was "the right thing at the right time." His position was to listen to the needs of the times and to change in line with them. It has been 40 years since the establishment of our company. To the extent that Joban is a well-established company, it has been even more under pressure from intense change, and we have overcome this. The second thing he said was "maintain harmony with the local community." In 2003, we moved our headquarters from Ginza in Tokyo to Iwaki-shi in Fukushima Prefecture. This change was the finishing touch to our previous actions, an expression of our commitment to create deep ties with the local community, and a reconfirmation of our dedication. Mr. Nakamura believed that the tourism industry could not succeed without the acceptance of the local community, and that it would be necessary to cooperate to overcome the discord between towns with companies that is common in rural areas. In an interview he gave immediately prior to the opening of the Center, Mr. Nakamura stated, "Our first objective is to revitalize the Joban region, and our second objective is to extend the life of the company." This quote was run on the front page of the local newspaper the following day. This policy of Mr. Nakamura still guides our conduct today.
Yoshizawa:Please describe some events that shed light on former President Nakamura's management stance of emphasizing harmony with the local community.
Sakamoto:There was initially opposition from all 30 of the local ryokan (Japanese style inns) against the plan to construct a large hotel in the Iwaki Yumoto region that is full of hot springs. Mr. Nakamura visited each ryokan to convince them that they could all work together to attract large numbers of visitors to the region and find a path that would be mutually beneficial to the entire region. As a result, a lot more guests than initially anticipated came from the very first year of opening. The hotel of the Joban Hawaiian Center was filled with guests every day. The sales division repeatedly requested that the hotel be expanded or a new hotel constructed, but Mr. Nakamura persistently refused. Of course, the extra guests exceeding the capacity went to local ryokan with our company allowing these guests to use our leisure facilities. Only after many of the local ryokan expanded their buildings or constructed new buildings did he approve the construction of a new hotel. However, he rejected a proposal for a 600-room hotel and decided instead to construct a 300-room hotel. At the time, Mr. Nakamura also reminded us that "we must keep our promises to the local ryokan until the very end; let any extra guests stay at the local ryokan as before."
Yoshizawa:What other considerations were made apart from the relationships with local ryokan?
Sakamoto:Instead of offering national-brand foods or souvenirs in the facilities, we purchased everything from local producers. We also placed orders with a local factory for the production of aloha shirts and muumuu clothes, although doing so made it harder for us to provide our guests with such clothes. In several years, the factory built a new building. By collaborating with local companies, we also produced many original products. At present, we have introduced a free tour bus system through collaboration with the local chamber of commerce and industry for the purpose of encouraging tourists to extend their journey. An increase in the appeal of the entire community is expected to have numerous benefits for both the economy and standards of living. I know a large number of examples that attempted to revitalize the community in vain. Actually, it is quite difficult for local companies to join forces.
Yoshizawa:Ultimately, what were former President Nakamura's main concerns?
Sakamoto:Mr. Nakamura was very strict with other executives and managers, but he always showed tremendous kindness and consideration for front-line employees. He always ate in the employee cafeteria and would inquire about an employee's father or ask about a grandmother's recent illness, for example. The entire time he served in our company, he would go to the various workplaces and encourage employees. The Joban Hawaiian Center was profitable and a tremendous success from its very first year, but it seems that the difficult circumstances of the mining town never left his mind. He later recalled that he had simultaneously experienced his own hell (the mine) and heaven (the Joban Hawaiian Center). I guess that Mr. Nakamura was always thinking about how to make it possible for employees of the Joban Mine, their families, and local residents to live secure and happy lives.
Yoshizawa:What is the company's position on management in the future?
Sakamoto:Theme parks require "culture" that cannot be provided elsewhere. In the 1990s, we expanded the theme from "Hawaii" to "hot springs," causing quite an uproar, but in the end this had the effect of expanding thinking on leisure facilities. Our approach is to return the natural resource of hot springs to society and to provide high-quality leisure that is both enjoyable and healthy. Of course, Hawaii is our long-standing symbol, and we will continue to refine this image through the pursuit of authenticity. The movie "Hula Girl" will open in September 2006, telling the story of Joban's establishment. This should provide tremendous support to our business. To make sure that this is not simply a temporary effect, we need to develop appealing products.
Yoshizawa:Can you discuss the company's CSR activities?
Sakamoto:We have just created a CSR Investigation Committee. It hardly needs saying, but CSR activities should be started close at hand with something easy, even if it doesn't look impressive. Hoping to "graduate" from a group of novices, we undertook TQC activities and won a Deming Prize through the continuous hard work of our employees. At any rate, we would like to make our CSR activities an extension of our day-to-day business activities.
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JAPAN | Overseas
