Hitachi, Ltd. Chairman Higashihara Toshiaki (東原敏昭) discussed the end of seniority-based executives and explained that 8 of the company’s 11 directors are outside directors. He also revealed that the company has sought to overcome big-company disease by reshaping its business portfolio and actively appointing talent from overseas.
Hitachi, Ltd. Chairman Higashihara Toshiaki (東原敏昭) pointed to the end of the executive model shaped by long-standing seniority-based promotion and explained that outside directors now constitute a majority of the board, accounting for 8 of the current directors. He expressed the view that the rising proportion of directors from outside the company would affect the organization’s decision-making processes and approach to management.
Chairman Higashihara Toshiaki (東原敏昭) said that the company had pursued business portfolio reshaping while actively appointing talent from overseas. He expressed the view that the company had advanced organizational transformation with an eye to medium- and long-term growth, rather than focusing solely on short-term results.
Since the 2010s, Hitachi has pursued structural reforms, including streamlining more than 20 listed subsidiaries, while advancing overseas acquisitions in rapid succession. These moves were positioned as part of an effort to move away from the traditional conglomerate structure, strengthen selected business areas and create new businesses.
The article explains the background to Hitachi’s management policies and organizational reforms through the chairman’s views and examples of measures implemented. Readers should focus on changes in the proportion of outside directors, progress in the overseas strategy, and the direction of reforms aimed at overcoming big-company disease.