Japan's elite are generally working in an environment remote from...tacit knowledge. While using their brains to understand theories or develop policies, they lock themselves up in the small world of their organizations and domains of expertise without venturing out to gain first-hand experiences in hard-driving business competition.
...Japanese companies' international competitiveness in terms of human resources and organizational strength comes mostly from the shop floor. Countless unsung heroes at work sites have been driving the development and prosperity of this country.
The work force of many time-honored companies in Japan, however, is aging rapidly, dimming the prospect of promotion for the growing ranks of senior workers. In such companies, young employees may have opportunities to develop their abilities and skills in their 20s, but during their 30s the years are often dark and fruitless.
During this period, many of the candidates for top executives become colorless and shrewd corporate pinheads. In the Japan of today, these weak and petty leaders are frittering away the legacies left by the unsung heroes in the past.
In order to pull the nation out of the prolonged economic stagnation that started in the so-called "lost decade," it is necessary for individuals to develop their full potential. That means people need to go beyond the boundaries of their domains and venture into others' turf. This is crucial for regeneration and creation, as testified by world history and, more to the point, by the history of Japan.
In the last days of the Tokugawa feudal government in the 19th century, reform-oriented individuals freed from the fetters of the class system and feudal domains flocked to new organizations such as Kaigun Denshujo, Japan's first naval-officer training school, and Kiheitai, a crack volunteer militia unit organized by Choshu-han (now Yamaguchi Prefecture).
Fierce, head-on competition at these places produced the forceful mold breakers and bold reformers who opened a new chapter in Japanese history.
...The current feudalistic "kaisha'" system, under which leaving a company entails considerable disadvantages, should be thrown into the dustbin of history. Instead, potential leaders should be strongly encouraged to change their jobs. This could change Japanese society as radically as the abolishment of the feudal domains and establishment of prefectures in the late 19th century. Since it is impossible to force private companies to take such a step, the government should exercise initiative.