[Circular Economy Project Dialogue Vol. 1] The First Step Toward a Circular Society. ASNOVA’s Vision for a Sustainable Growth Curve
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From formulating its purpose and going public to expanding into Vietnam with its purpose at its core: ASNOVA's purpose and branding as it grows with change
ASNOVA Co., Ltd., headquartered in Nagoya, is Japan Scaffolding Rental Business and has expanded to Vietnam. In 2021, Ueda, the representative of our company, read the book "PURPOSE BRANDING" by Mikiko Saito, Director, CEO of SMO Co., Ltd. (hereinafter referred to as "SMO"), and we formulated our purpose with the support of SMO and have been implementing purpose branding.
Looking back on the purpose formulated with SM Director O and its history, and about efforts to localize the purpose into different languages and cultures and promote overseas expansion, Ms. Mikiko Saito, representative of SMO, interviewed Ms. Ueda, the representative of our company.
Text: Makoto Ono
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PROIFILE
- Mikiko Saito
- Representative of SMO Corporation Director After joining Dentsu Corporation, he was seconded to Dentsu Research Institute, and in 2005 established Mikiko Saito Office (later changed to SMO Corporation). With the purpose of "passing on the real thing to the future," we will be one of the first in Japan to adopt purpose branding that focuses on the intrinsic value of things. He provides consulting services that combine Future Insights and creativity to create strong and beautiful brands. To do this, he travels the world, touches all kinds of people, and pursues things he has never seen before. Graduated from the Faculty of Economics, Keio University. In July 2021, he published his book "PURPOSE BRANDING: What do you do?" Rather than "Why do it?" Thinking from Publishing. Valqua Co., Ltd. Outside Director.
- Keiji Ueda
- President ASNOVA Co., Ltd. In December 2013, Nihon Rentect Co., Ltd. was established. In December 2019, the company name was changed to ASNOVA Co., Ltd. In order to meet the rental demand of wedge binding type scaffold, we have created a thorough equipment management base. In April 2022, the company achieved its goal of going public, which it had been aiming for since its establishment, and aims to expand its business in the future.
Saito: Today's interview is being conducted online in Nagoya and Tokyo, but could you first explain the pyramid in the background of President Ueda's Zoom call?
Ueda: The pyramids were built 2,500 years ago, but even at that time, the scaffolding were built with very advanced technology. Even Japan, just as scaffolding has always been used when constructing historical buildings, scaffolding has supported society since ancient times, and I feel that it is a very important culture. However, since it is removed scaffolding, it is difficult to leave an impression. In order to bring out this ephemeral existence as much as possible, this pyramid is used as the background of Zoom.
Saito: Without scaffolding, society would not be possible. Every time I saw a construction site, I thought that the scaffolding was very beautiful as a structure, but it may also have been because of the ephemerality that is not always there.
Well, you contacted us after reading my book, and after that ASNOVA's purpose project progressed at an incredible pace. I'd like to hear the story behind why you decided to formulate a purpose.
Ueda: Up until then, we hadn't been able to successfully formulate and implement a management philosophy and vision. As we tried various things, we had a lot of people with different values because we were mostly mid-career hires, and as we proceeded according to our own criteria, we lost unity as an organization and our direction became scattered.
In the midst of all this, I read Saito's "PURPOSE BRANDING" and realized that it was important to have the same values and standards of judgment. I thought that in order to do that, I needed to formulate a purpose as soon as possible, so I immediately took action.
Purpose planning before listing
Saito: Thank you. Looking back on the process of formulating the purpose, many employees were involved in the formulation, but were there any difficult parts or good parts?
Ueda: At the time, we were just about to go public, so it was hard to coordinate schedules, but apart from that, I think it was a very meaningful and enjoyable process. We all talked about various things, listened to each other's thoughts, and everyone made the workshop a high priority and participated actively, which made me realize once again the reason for the company's existence.
Saito: I think the awareness that we needed to make this a high priority came about because of Mr. Ueda's strong desire, but was there any secret to fostering that feeling?
Ueda: I didn't really take a leading role in the workshop, but rather tried to encourage others to speak up, so I didn't really say much. The SMO members led the workshop well, so if I had just left myself to them, everyone would have kept speaking up, and we would have run out of time.
Saito: That's good. What was the timing of formulating your purpose when the company was trying to move forward before going public?
Ueda: It was a very busy time, but I think it was good that we did it at a time like that. The word "busy" is written as "losing one's mind," and I think being busy is not good for the mind. That's why I think it was even more important to clarify our reason for existence through formulating our purpose.
Saito: The resulting purpose was "Create your places of tomorrow with the power of kasetsu." What are your thoughts on this, Mr. Ueda?
Ueda: I think it really represents the company as it is today. I've always had something similar to this purpose in my heart. I really like it, and when we finally decided to make this our purpose, not a single person in the company objected.
Saito: That's great to hear. It seems like your employees were very happy with the change.
Ueda: Yes, I think this is what it takes to make something permeate. Before Purpose was created, we were desperately trying to make our previous philosophy permeate, but I wonder if that was a mistake. I think this workshop showed me that the beginning of permeation is when everyone says, "This is our reason for being," and it seems to well up from the depths of their hearts.
Saito: Even if the higher-ups show the employees the company's philosophy on a shelf and say, "Believe in this!", it doesn't resonate with them.
Saito: This is a book for employees that describes what the ASNOVA brand should be like, but we also created this brand book together. How is it being used?
Ueda: It's extremely useful for conveying a unique worldview when renovating or building a website, or when creating printed materials for marketing purposes.
Saito: From the story behind the purpose, to an explanation of the logo design, to even describing ASNOVA as a person, we're pleased that we've been able to produce a book that helps people understand ASNOVA.
Saito: So you formulated a purpose and then went public, but were there any times before and after you went public when you felt the power of your purpose?
Ueda: Especially after we went public, we have many investor briefings, so we always talk about our purpose at the beginning. By putting our purpose front and center, we have more opportunities to let investors know that "this is what our company is like," and I think that having this purpose or not has made a big difference in how well we can gain people's sympathy. I'm really glad that we formulated it.
Saito: What was the reaction inside and outside the company, including from investors?
Ueda: I guess something is being communicated. Rather than focusing on financial results, we hear people sympathize with the company's vision and want to hold shares and support the company for a long time, so I think this is because we put our purpose front and center.
Saito: It's helping to create new ASNOVA fans!
Purpose-driven expansion in Vietnam
Saito: I believe you have recently expanded into Vietnam. What is the current situation?
Ueda: We established a corporation in Vietnam in October last year, and started a full-fledged rental business in April. Even if there is demand for a business that owns and rents scaffolding, it is dangerous without scaffolding management know-how, so I think that we will have a solid foundation for about three years, including training of local staff. On top of that, we are gradually preparing for the future so that we can increase our scaffolding holdings at once to meet demand.
Saito: It's typical of President Ueda to not miss out on opportunities for growth and to ensure ASNOVA quality by properly educating employees. We also helped with the localization of Purpose in Vietnam. I would like you to explain that to me.
Ueda: We translated the purpose book and created a Vietnamese version to share with local staff. The local representative is very sympathetic to the purpose, and even though the country has changed, he is acting with the understanding that the ASNOVA Group should continue to run with the same aspirations. We are also putting the purpose front and center at exhibitions in Vietnam to promote our branding.
Saito: Did you encounter any difficulties when localizing for Vietnam?
Ueda: SMO provided us with excellent support in this regard, so we didn't have many difficulties.
Towards spreading purpose in the future
Saito: Thank you. Please let us know if you have any plans to further promote Purpose both domestically and internationally.
Ueda: When we think about a new business, we discuss it based on our purpose, and when we decide on anything else, we use our purpose as an evaluation criterion.
Among these, we put the most effort into training camps. We hold training camps with about 10 people to think about the issues ASNOVA faces and how to respond to customer needs. Previously, we consulted with external experts, but when we think about our own problems ourselves, it eventually leads to us taking it upon ourselves, and awareness grows. We hold these training camps with about 10 people, regardless of position, gender, or superior/subordinate status.
Saito: That's wonderful. They're really creating an opportunity for each employee to speak their mind. Are you going, Mr. Ueda?
Ueda: I try not to go. I get feedback later and create an opportunity for everyone to think about it. When starting a new business, you're bound to hit a wall, so we hold workshops to think about how to overcome that wall, and hold discussions to share the challenges with everyone, and we end up coming up with some pretty good ideas.
Saito: When you look at it from a little distance, you can see different opinions.
Ueda: What's interesting is that we always reach a certain conclusion.
This will give rise to a sense of "we". Until now, I have passively given instructions like "do this", but now we are creating something ourselves - this is the power of CASETSU. It's okay to fail, so we test it hypothetically and try it hypothetically. I think this is important. Even if we create a good purpose, it's meaningless unless we make it our own and create something new ourselves.
Saito: Do you feel that purpose has taken hold within the company?
Ueda: It's just a feeling, but I think it's starting to stick in the back of everyone's mind. Compared to a general management philosophy, the purpose we've formulated this time is easier to put into words, which I think is a big factor.
Saito: That's the best part about purpose. Whenever we formulate a purpose, it's essential for us to translate it into words that are easy for everyone to understand and use.
Without a standard for judgment such as purpose, it will be difficult to keep up with change
Saito: As a business owner, what advice would you give to companies that are looking to formulate their purpose?
Ueda: Even at our company, our business model changes every 2-3 years, and our customers' requests change too, so the times are changing very rapidly. If it takes several months for the various opinions from our employees to reach us, we can't keep up with that kind of speed. The field knows the field best, so everyone needs to make the best decisions on the spot, and I think that without a standard for judgment like purpose, we won't be able to keep up with the world. It will be difficult to maintain the company, let alone prosper.
I don't think we can keep up with the old top-down approach, and I feel that unless we create an organizational structure that allows all employees to think for themselves and has criteria for making decisions, we will be left behind.
Saito: I think that's an opinion that only you, who practices purpose-based management, could have. Thank you. Finally, may I ask you about your purpose?
Ueda: I guess your personal purpose is to "adapt to all changes with one mind." If you don't have something to rely on, you personally won't be able to keep up with the rapid changes.
Saito: I always say that future managers need purpose and the ability to read the future. How can we cultivate the wonderful foresight that you have?
Ueda: No, no, I tried various things to try to hit the jackpot and make a profit, and among them, only scaffolding rental was in great demand. To be honest, I didn't want to step into the industry too much, but I decided to do it because it would benefit the world from a social perspective. Now I feel that maybe it doesn't have to be a job that I like.
Saito: So you got there through repeated trial and error. The start was different, but as you continued, it became your calling.
Ueda: Yes, I guess that's true, because what started with "thank you" has continued for over 10 years. On the other hand, when I tried to do other things, I was just trying to make money, and it just exhausted me. I think there's also a difference in motivation for gratitude.
Saito: After all, things that can be continued for the long term are things that benefit society and people, and that is connected to purpose. As a result, it also generates profits in the long term. We are very happy to be working with ASNOVA, which embodies such purpose branding. We look forward to your continued support.
Ueda: Thank you very much.
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