Designing Organizations That Can Compete Globally
As Japan’s domestic market continues to shrink and securing top talent becomes increasingly challenging, global expansion and the organizational structures to support it have become essential to sustaining business growth and brand longevity. At YL Projects, we aim to serve as a bridge between Japan and the world, practicing team building grounded in a distinct philosophy and strategic approach.
In this article, we speak with Yoichiro, Co-Founder and CEO of YL, about why global teams are becoming indispensable for companies in their founding stage. Through the lens of today’s Japanese market, he discusses how to build organizations that can compete globally, and how a clear manifesto helps establish a shared foundation for the team.
Why is global expansion essential for scaling revenue?
We have been hearing for quite some time now that Japan’s domestic market will continue to shrink, and this is no longer just a projection. Factors such as a declining and aging population, a decrease in high-spending generations, and stagnating wage growth have meant that domestic consumption is not increasing in any meaningful way.
At the same time, Japan’s level of craftsmanship is exceptionally high. Over the years, the country has produced countless brands that are recognized and respected around the world. Despite this, keeping such outstanding products and services confined to the domestic market feels like a missed opportunity. If the goal is to scale revenue, the most direct path is to step beyond Japan, build a base of international fans, and have people around the world actually use and engage with the product.
What did you consider most carefully when you decided to take the business overseas?
It was to build a dedicated team. At the same time, I was very conscious of a common pitfall. When global expansion is handled solely by Japanese team members, decisions tend to be made through the lens of domestic customer expectations. What Japanese consumers perceive as “good” in a product or creative output can differ significantly from what international audiences genuinely want.
This is why diversity is so important. Without people on the team who bring different languages, cultural backgrounds, and perspectives, it is difficult even to grasp what kind of business will resonate overseas. If a company aims to grow into a meaningful global venture, cultivating a global team mindset from the founding stage is essential.
You emphasize the importance of diversity, but it seems challenging to integrate it into traditional Japanese corporate culture.
In most Japanese companies, hiring has tended to prioritize candidates who fit the existing corporate culture. The idea is that employees should closely follow the company’s mission, vision, and established behavioral guidelines. It’s a conservative approach, favoring people who align with the perspectives and priorities of company leaders.
Today, a new approach is gaining traction, especially among global companies. The concept of “Culture Add.” Rather than hiring people who simply fit the current culture, Culture Add emphasizes bringing in individuals who fill gaps in the organization or contribute new ways of thinking. In a future defined by rapid paradigm shifts and game-changing developments, relying solely on employees who follow instructions or prefer the existing culture can limit a company’s ability to generate fresh ideas and solve challenges at its core.
What if Japanese companies feel apprehensive about bringing in people with completely different ways of thinking? How would you address that?
I think that feeling is natural. But the key is to bring together people who share the same overarching goal. Sharing a goal means having a stable “guiding principle” to anchor the team.
To successfully implement Culture Add, it’s important to start by defining the company’s foundational story – its purpose, values, and direction. For example, asking questions like:
- Why does this business exist?
- Why do we want this product or service to reach as many people as possible?
- What social challenges are we aiming to address?
Answering these fundamental questions establishes the company’s core guiding principle. With this in place, even team members with very different ways of thinking can align on the goals, making the team stronger. As everyone moves toward the same objectives, differences in perspective become less of a concern.
Another critical factor is having the right leadership. This requires top executives or HR leaders who understand and can execute this approach. Hiring or working with HR professionals who can actively shape company culture and translate the company’s core values into hiring, evaluation, and day-to-day practices is crucial to making Culture Add work.
I completely agree that having everyone on the team share the same goal is incredibly important.
Absolutely. I’d like to introduce a book that captures this idea particularly well: Competitive Strategy as a Narrative Story by Ken Kusunoki. In it, he argues that a good business is one that has a story everyone can tell. What matters is having a vision for the future that employees can share with genuine excitement, whether they’re talking to family or friends and saying, “This is what my company is trying to do.” I think that sense of excitement is key. A vision should not be something only the CEO can articulate. I believe it needs to be something every individual on the team can speak about in their own words.
At a time when Japanese design and creative work are gaining increasing attention overseas, YL has defined its own story as becoming a bridge between Japan and the global market. Expanding internationally removes the “ceiling” on revenue for our clients, enabling growth that is not limited by the domestic market. At the same time, by operating our own businesses such as EC Salad Bowl and tentoten (our upcoming educational business) within the agency, it allows us to go beyond the boundaries of a single company and take on a wider range of ventures and challenges.
This shared sense of possibility, of the world opening up, is something we consciously cultivate across the entire team, and it has become a driving force behind our everyday work.
What concrete steps do you take when creating a vision?
At YL, we translated our vision into actionable principles through what we call our “manifesto,” consisting of ten key points that are shared with the team. We created this manifesto when our team began to grow, in response to requests from members asking for clarity on what expectations they should meet. This approach is not unique to us; companies like Nike are also known to have manifestos, which were reportedly created to reenergize employees during a period of declining performance.
Can you share YL’s actual manifesto?
Of course, here are a few that convey our spirit and perspectives.
Embrace the spirit of Ocean’s 11.
We think of the team like Ocean’s 11, rather than Fast & Furious. Each member is a specialist, whether in strategy, coordination, technical skills, or other areas. By collaborating, we can take on bigger projects. Our connections are professional, not familial.
Be confident in our value; only YL can create it.
This principle highlights YL’s emphasis on true value. We believe fair compensation should reflect the experience and knowledge each member brings. This compensation is then reinvested into new challenges and used to fuel further contributions, creating a continuous cycle of growth and impact.
Routine is a danger signal.
We believe that the traditional routine of coming into the office every day to complete set tasks stifles creativity. Large companies seek out creative agencies like ours because our ways of working and thinking are fundamentally different. At YL, routine is a warning sign. Stability without challenge signals stagnation. We encourage team members to meet new people, travel to broaden their perspective, and pursue new challenges. Contribution is measured not by office presence, but by the willingness to learn, experiment, and push boundaries. These behaviors are essential for success in a global, creative environment.
What are the benefits of creating a manifesto?
A manifesto clarifies a company’s culture, which brings significant advantages in recruitment.
First, it helps prevent mismatches and improves retention. By putting culture into words, a company can communicate its values consistently to both current and future team members. The manifesto also sets expectations aligned with a Culture Add mindset, encouraging individuals to contribute their unique strengths. This clarity reduces hiring mismatches and supports long-term retention.
Second, it makes evaluation criteria transparent. Team members can easily understand how their contributions are assessed. Rather than simply measuring presence in the office, performance is evaluated based on whether they are taking on new challenges and actively contributing toward the company’s goals.
For startups, a manifesto can also support growth strategy. Early-stage companies often cannot offer large salaries, even if they have raised venture capital. Especially in these cases, it’s crucial to go beyond financial compensation and invest in building a culture where people feel they can grow, leverage their strengths, and make meaningful contributions.
So establishing a company story and setting its culture is the first step toward building a resilient, continuously growing company?
Exactly. Building a globally competitive organization starts with a clear story and culture. Without it, executing marketing or HR strategies alone won’t unify the company’s direction, and even carefully recruited talent may leave quickly. Having a strong shared story, and embracing the Culture Add mindset to actively welcome what’s missing, are essential conditions for creating a unique, high-performing team capable of growing globally from the founding stage.
Through our manifesto, YL aims to unlock the untapped potential in Japanese companies and cultivate professional teams that can truly compete on the world stage. In light of Japan’s changing market, it’s essential to rethink how organizations are built.
Interview by: Ichiro Yasui
English Translation by: Juri Ito
