Hitoshi Funahashi: Founder and CEO, ICMG Group

Makoto Kigawa: Former Representative Director and President, Yamato Transport / Former Special Advisor, Yamato Holdings Co., Ltd. / External Director, ICMG Group

Kigawa: Rather than a meeting with ICMG Group as a whole, my encounter with Hitoshi (hereafter "Funa-san") was sparked by the Japan Association of Corporate Executives (Keizai Doyukai). I learned about him and his company, and as we began communicating, we naturally ended up working together. At that time, I had just finished executing my own growth strategy for Yamato Holdings (hereafter "Yamato") and had recently handed over the presidency to my successor.

As you know, Yamato was led by Masao Ogura, the "Restorer of TA-Q-BIN," who guided the company with firm principles. A wonderful DNA of "service first, profit later" had taken root. Consequently, the employees had a deeply ingrained culture of following a charismatic leader as their successful experience.

I joined Yamato from a banking background right at the 30th anniversary of TA-Q-BIN. My role was to transition from a focus on individual consumer deliveries and reshape the business for its next stage of growth.

Funahashi: Changing a robust system built by a great founder requires extraordinary determination.

Kigawa: Exactly. My mission as an outsider was to create a momentum for bold change. However, I had to transform the company while preserving Yamato's positive DNA. Therefore, I aimed to add non-financial value centered on "people" in a new way.

While we aggressively increased network investment and transformed our business portfolio financially, I felt that the most crucial element—the "people"—had not yet fully matured.

As I prepared to pass the baton, I wanted someone to support the development of these "people" (non-financial value). That was when I encountered ICMG Group’s concept of "Intellectual Capital". I felt they were a group that truly valued non-financial assets.

Most people resist new initiatives. It was a time when changing what Masao Ogura built invited considerable resistance. I started communicating with ICMG because I wanted a partner who could drive this transformation with me—specifically, someone to support the next president.

Funahashi: I was still young then, but hearing you speak about your management philosophy and soul, I always thought you were a remarkable person and hoped to work with you someday. I still vividly remember your positive response. I believe our mutual feelings and the challenges we wanted to tackle resonated naturally.

Kigawa: The biggest factor was that their core philosophy aligned with my sensibilities. To be honest, since my days in banking, I haven’t placed much weight on major consulting firms.

Funahashi: Why was that?

Kigawa: Traditional consultants observe a company for a short time, write a beautiful scenario, and just leave it. But the front lines don't move that easily. I never intended to outsource the entire scenario to a consultant. While I occasionally asked for help validating my own plans or gaining internal approval, finding ICMG and Funa-san was different.

Beyond ICMG's track record, it was Funa-san’s personality and their unique business model—diving deep into the organization and staying by our side without ever backing down—that made me want to co-create with them.

Funahashi: It certainly felt like our intuition was working in sync.

Kigawa: It really did. ICMG’s strength lies not in presenting a polished exterior, but in being willing to dig out the "broken" areas while standing by everyone from top management to next-generation core employees.

When executing a new growth strategy, "people" are indispensable. It’s vital that the philosophy aligns with the top management and that there is genuine commitment. At Yamato, my first priorities were developing next-generation leaders and shifting the business portfolio from B2C to B2B. While you can create a flow for a new business model, you must develop people from the start to support it when the baton is passed.

To that end, I established a "Next-Generation Leader Academy" for human resource development. The current president was a member of the first graduating class. He was an extremely powerful and action-oriented individual.

Funahashi: Both your management style and ICMG’s Intellectual Capital Management are tasks that require immense patience. Honestly, it would be "easier" if we were just told to write the strategy ourselves.

But that would be self-satisfaction. We might draw a business model, but if the people inside the company don't truly "get it," it won't work. Instilling a sense of ownership in clients is a highly advanced consulting skill. We idealize a state where every ICMG member has the capability and stamina to make clients take the lead themselves.

Kigawa: While the top leader drives change, the core employees determine whether it actually happens by making it their "own business". ICMG’s true strength is their persistence in that process. On-site, some may say they don't need consultants, but before they know it, they are thinking right alongside ICMG as owners.

Funahashi: Thank you. We have always been obsessed with breaking through the wall of "stagnant front lines". Even a giant like Hitachi, Ltd.—which initially expressed skepticism—chose to hire us when we were a company of only ten people. We learned a great deal from Hitachi’s management power.

Kigawa: Strength built on Intellectual Capital will surely remain ICMG's greatest asset.

Funahashi: We are now building a new domain centered on Intellectual Capital: expansion into the Global South, particularly India.

Kigawa: I can feel that momentum starting to build.

Funahashi: Our experience with Hitachi’s reforms in Asia and assisting Yamato with its Asia-Pacific strategy was significant.

Kigawa: While domestic Japan is important, we previously lacked a framework for regional areas to grow together. We’ve worked together on the axis of wanting to change the focus from Tokyo-centric models.

Funahashi: Exactly. The concept of starting from regional Japan to Tokyo, and from Singapore to the rest of Asia, has evolved over the last decade into our "Global South" strategy. Our presence in India is a practice of our philosophy: "Transformation beginning with Human Capital".

Kigawa: Starting with human capital takes time to reflect in profits.

Funahashi: Yes, but as a result of facing many companies, we have launched a new service called the "KACHI (Value/Win) Model". We focus on practical implementation rather than just market research to tackle the Global South market, especially where digital platforms are essential.

Kigawa: That will undoubtedly be the core of ICMG's next big strategy. Increasing the non-financial value of regional Japan is absolutely necessary. There are many ambitious companies in the regions, but they often lack the "Relationship Capital" to connect with the outside world.

Funahashi: Regional bank leaders are also very ambitious. However, their activities can become isolated within the region. We connect them. Recently, a president of a regional bank visited Singapore, and seeing his excitement for the local energy was impressive.

Kigawa: Seeing a company as a collective of human capital rather than a cash machine, and connecting regional ambitious firms with the Global South—this "Connect" strategy is definitely the right axis.

Kigawa: Looking back at the 2019 training on Oki Island... the excitement then was peak.

Funahashi: It was a "grit-based" program where Yamato employees stayed in local homes for a week to absorb regional needs.

Kigawa: They came back completely inspired. They started thinking for themselves about how to support the community's needs.

Funahashi: We were amazed by their experiential knowledge. However, one customization was needed: they had great ideas but struggled to put them on paper as formal plans. We stepped in to help them shape those customer-centric ideas into models.

The final presentation to the executives wasn't just a report; it was a "moving encounter". The management was stunned by the strength of the front-line's passion.

Kigawa: From that regional co-creation project, concrete initiatives like "Cargo-passenger mixed transport (Kakyaku Konsai)" were born. We put packages on bus routes to sustain the lines while improving efficiency. This culture of developing talent that thinks alongside regional needs is now firmly rooted in Yamato.

Funahashi: The values tucked away in people's minds—what we call "values that don't appear on the balance sheet"—are the real deal. Redrawing these through direct dialogue with the people on the ground is our style.

Kigawa: No other consultant cries and laughs with the front lines like this. For a leader, there is no more reassuring partner.

Funahashi: What we are putting the most effort into now is "Succession". Starting in FY2026, we will launch the "Intellect and Axis Leadership Program" for all employees in collaboration with Professor Ogi of Kyushu University.

Kigawa: That is a crucial initiative. As an outside director, I hope ICMG never loses its origins—the values that give clients the most peace of mind.

Funahashi: In an era where AI replaces tasks, human-specific Will and Wisdom are becoming relatively more valuable. We want all employees to transform their experience into wisdom and root the ICM (Intellectual Capital Management) philosophy in every job.

Kigawa: Leaders must execute reforms for the era while maintaining their "Axis" and preparing the next generation to carry that flow.

Funahashi: That is exactly why we insist on "Personalization". We start by confirming individual "Will" and then layer it onto the organization's Purpose.

Kigawa: It’s not about superficial numbers like gender ratios. It’s about creating a state where both management and employees can clearly state what must be done next.

Funahashi: We let next-generation leaders experience the "4D Cycle" of ICM and continue coaching them until their vision is realized.

Kigawa: As the name ICMG implies, you value "Intellect," "Non-financial Value," and above all, the "Human Axis". This grit-based reliability is an indispensable support for leaders when they are serious about drawing new growth strategies.

Funahashi: Thank you. We will ensure this "Intellect and Axis" is inherited, aiming to take the company to higher levels. We are determined to spread this eternal philosophy for the next 100 years.

ICMG Group is a business co-creation partner for Japanese companies that delivers solid results through co-creation with diverse stakeholders by visualizing the invisible value of a company's intellectual capital that does not appear on the balance sheet.

For more than 25 years since its establishment, the Group has been providing services in Tokyo, Singapore, Bangalore, Abu Dhabi, Nairobi, San Francisco, Shanghai, and Stockholm, including intellectual capital evaluation, which is the source of corporate value, strategy development based on such evaluation, execution, leadership development, business investment, venture capital We are committed to creating results for Japanese companies by co-creating with our clients in a comprehensive manner, including M&A, UI/UX design, engineering, recruiting, and the establishment and management of joint ventures.

We have also established a joint venture in Singapore with Tokyo Electric Power Company and Chubu Electric Power Company to invest in renewable energy and next-generation infrastructure, and have entered into a partnership with the United Nations UNDP on SDG innovation. In venture capital, we have co-invested in India with top global VC firms such as Sequoia Capital, Google, and Tiger Global Management, etc. In 2023, ICMG Digital will accelerate innovation in society by connecting the paths and visions of the management of Japan's largest companies with the power of digital technology. ICMG Digital, which will accelerate innovation in society by connecting the paths and visions of the management of Japan's largest companies with the power of digital technology.

The core value of the ICMG Group, which has created such diverse value, lies in its Intellectual Capital Management, which has always visualized the invisible value of companies and organizations, envisioned their future vision (Purpose), and realized their value creation.

URL：https://www.icmggroup.com