Founder's Journal: Navigating Japan's Q2 Business Climate
Two hikers with backpacks navigating a path towards majestic, snow-capped mountains, symbolizing the challenges and journey of leadership and strategic exploration.
Navigating Q2 Amidst Uncertainty and Change
The second quarter of 2025 has been defined by a palpable sense of volatility and strategic reassessment. For any CEO operating within the current Japan Business Climate, the challenges are multifaceted, ranging from turbulent financial markets to a fracturing Global Supply Chain. These pressures demand not only robust business strategies but also a deep understanding of the human element that drives resilience and innovation. This period has underscored the necessity for leaders to look beyond immediate metrics and grapple with the deeper economic and geopolitical currents shaping our future.
Economic Volatility and Market Malaise
Confronting a Shifting Financial Landscape
The incredible swings in the stock market have created widespread anxiety. A conversation with a Fidelity analyst highlighted a sobering truth: while markets trend upward over the long term, gains often fail to outpace the accelerating costs of essentials like healthcare, housing, and education. This creates a difficult environment for personal and corporate investment. My own past experiences with public markets—buying high, selling low, and losing sleep—solidified my decision to focus on investing in real estate and the Delphi Network itself. For a business owner or CEO, figuring out how to best invest in your own enterprise is a complex challenge, but it offers a degree of control absent in public equities.
This quarter, there's a tangible sense of relief in not being exposed to the market's whims. The intense pressure on financial professionals is immense, often leading to destructive behavioral patterns. This market turbulence contributes to a wider feeling of "malaise" in the Japan Business Climate. I sympathize with a former CEO from a global beverage company, who once told me how sick he was of working in a shrinking market. This sentiment is echoed by recent high-profile exits of talented French tech CEOs, whose companies have decided to leave Japan altogether, and by Robert Walters, who noted a general slump in global business.
The New Geopolitical Reality
Addressing the Global Supply Chain Crisis
An aerial night view of a sprawling cargo port with numerous shipping containers stacked, illuminated, and a bridge in the background, depicting global supply chain complexities and logistics.
A primary challenge dominating boardroom conversations is the instability of the Global Supply Chain. A meeting with the director of a new corporate intelligence firm in Tokyo revealed that this is the number one issue for multinational corporations, yet it remains shrouded in secrecy. Companies are reluctant to discuss their strategies publicly, making it a difficult topic for the media to cover. These strategies for supply chain resilience are highly confidential and, in many cases, are still being formulated.
This new reality, where the world seems to be fracturing into protected fiefdoms, demands proactive engagement. We plan to organize a roundtable to explore potential scenarios and help companies address this critical challenge. The personal element cannot be ignored. While Japan remains a popular destination for expatriates, a global lockdown could force many of us to reconsider career and life choices, especially those who haven't maintained deep roots in our home countries.
The Irreplaceable Human Element
Finding Value in a World of AI
Close-up of hands typing on a laptop keyboard, with a second laptop visible, representing knowledge work, digital content creation, and the human element in a technology-driven world.
The rise of AI-generated content has prompted an existential question for knowledge workers: is the act of writing, thinking, and curating information now valueless? It feels akin to what manual laborers have experienced for centuries as their skills were automated. However, an executive coach offered a compelling counterargument: information curated by a trusted human is now more valuable than ever. AI, at its core, is a simulation. Authentic, lived experience and vetted insight provide a necessary filter against the noise, a belief that underpins the entire Delphi model.
The Power of Diversity in Networking
This belief in the human element extends to our community events. The May cocktails were a resounding success, and a key factor was the attendance of more women. This is not a superficial observation but a classic principle: variety creates interest and elevates energy. One guest noted that typical business networking events can be joyless, transactional affairs dominated by men focused on selling. With more women present, conversations often become more holistic and human, touching on families, hobbies, and life beyond work. This creates a more genuine and enjoyable interaction.
Similarly, the presence of both younger and older professionals enriches the environment. Young people bring an innate vigor and optimism, while older, more experienced individuals offer perspective and calm objectivity. Our events are thriving because they foster this dynamic, human-centric environment, attracting a strong contingent of country managers and a CEO community that values authentic connection over transactional networking.
