Ernie Higa — President, CEO, and Chairman of Higa Industries
"Your biggest asset as an entrepreneur is actually yourself—your own personal strengths" "You cannot get a cultural translator" "You have to develop a different mentality for any retail business" "It boils down to developing a strong corporate culture" "One size does not fit all" Ernie Higa is a Japanese American entrepreneur, business leader, and long-term Japan executive who built a career by bridging Japan and the United States. Born in Hawaii, educated in Geneva and Japan, and later trained at the Wharton School and Columbia Business School, he returned to Japan in the late 1970s to join his family's businesses before becoming an entrepreneur at the age of twenty-six. Starting at a time when entrepreneurship in Japan was far from mainstream, he built businesses across lumber, medical devices, and food service, including the development of Domino's Pizza Japan and later Wendy's Japan. His career arc reflects adaptability, cultural intelligence, and the ability to localise global business models for the Japanese market. Across multiple industries, Higa learned to lead older Japanese employees, attract talent outside traditional corporate pathways, build strong corporate culture, and balance global thinking with local execution in Japan. Ernie Higa's leadership story is a practical case study in what it takes to build, adapt, and lead businesses in Japan when the usual paths are unavailable. As a Japanese American who looked Japanese but initially lacked Japanese fluency and deep cultural familiarity, he entered Japan with both an advantage and a disadvantage. He did not fit neatly into the Japanese corporate hierarchy, yet that ambiguity also allowed him to break certain unwritten rules. In 1979, at the age of twenty-six, entrepreneurship was not a recognised or respected career track in Japan. Banks were sceptical, age mattered, company pedigree mattered, and credibility was usually attached to large organisations. Higa had none of those traditional signals, so he had to build credibility through performance, adaptability, and cultural understanding. His first major opportunity came in lumber. During the U.S.-Japan trade tensions of the 1970s and 1980s, he saw a way to add value by having Japanese lumber specifications cut in North American sawmills rather than simply importing logs for Japanese mills. This required him to bridge American production capabilities with Japanese precision requirements. The work demanded more than translation. It required understanding Japanese expectations around quality, reliability, tolerance, process, and trust. Higa's insight was that language could be translated, but culture could not be outsourced so easily. This became one of his central leadership lessons: leaders in Japan must understand the hidden rules, not only the spoken words. As his businesses grew, Higa had to attract talent despite not being a famous Japanese corporation. He found opportunity in retired executives and staff from major trading houses and large companies. These people brought experience, networks, and discipline, while his own strengths were U.S.-Japan bridging, entrepreneurial thinking, and the ability to access decision-makers in ways a young Japanese executive might not have been able to do. Because he was not fully inside the Japanese system, he could sometimes bypass the conventional constraints of nemawashi, age hierarchy, and formal ringi-sho decision pathways, while still respecting the rules that could not be broken. His leadership style evolved as his businesses diversified. In lumber and medical devices, leadership was closer to a conventional pyramid, where major decisions by the leader or top management shaped outcomes. But Domino's Pizza Japan taught him a different model: the upside-down pyramid. In retail, the store manager, not the president, creates the customer experience and drives revenue. The head office exists to support the frontline. This shift required humility, delegation, and trust. It also demanded a strong corporate culture that could scale across thousands of employees, including part-time staff. Higa built that culture around ideas such as "can do" and "unique and exciting." These were not slogans for decoration; they were tools for shaping behaviour. In a market where uncertainty avoidance can discourage experimentation, Higa pushed for positivity, growth, and practical innovation. His use of training centres, staff events, incentive schemes, and even the acquisition of Domino's Hawaii reflected a leader trying to make the company attractive, aspirational, and different from traditional Japanese employers. His approach to innovation was equally pragmatic. Japan's consumers demand quality, service, and variety, especially in food retail. Higa recognised that product development required customer input, staff ideas, leadership intuition, and the willingness to accept failure. But he also knew that entrepreneurs cannot afford massive failures. His early adoption of e-commerce for Domino's Japan was a form of decision intelligence: using technology to reduce lead times, test campaigns faster, and avoid being trapped by three-month flyer cycles that could not be changed once printed. In today's language, that mindset resembles the use of digital twins, rapid prototyping, and feedback loops to simulate, test, and adjust before risk becomes too expensive. His ultimate message for global leaders in Japan is clear: think global, act local, but do not go too native. Japan requires respect, localisation, patience, and cultural sensitivity, but foreign leaders must also preserve the strengths they bring. Leadership in Japan is not about copying Japanese companies or imposing foreign templates. It is about knowing which rules to respect, which rules to challenge, and how to build trust through consistency, positivity, and determination. Q&A Summary What makes leadership in Japan unique? Leadership in Japan is unique because credibility is often shaped by context before performance is even tested. Age, company name, educational background, capitalisation, scale, and social legitimacy all influence how a leader is received. Higa entered the market as a young Japanese American entrepreneur at a time when the idea of entrepreneurship did not resonate strongly with banks or mainstream business society. He had to lead in an environment where he lacked conventional status, yet he also discovered that being outside the system gave him some freedom. Because he was not a typical Japanese manager, he could sometimes approach senior decision-makers directly and avoid being pigeonholed by the normal hierarchy. The uniqueness of Japan lies in this balance: formal structures matter, but outsiders who understand the culture may sometimes move differently within it. Why do global executives struggle? Global executives often struggle because they assume that success in a large home market can be transferred directly to Japan. Higa describes two types of expatriates: those who come to show Japanese staff how things are done elsewhere, and those who recognise that Japan is different and try to work with those differences. The second group is more likely to succeed. Japan requires localisation not only in products and services but also in management. Decision-making, trust-building, customer expectations, employee motivation, and communication all work differently. A "one size fits all" approach fails because Japan's market has its own logic. Global executives must respect Japanese practices such as nemawashi, consensus-building, and ringi-sho processes, while also avoiding the mistake of becoming so localised that they lose the global strengths they were sent to provide. Is Japan truly risk-averse? Japan is often described as risk-averse, but Higa's experience suggests the deeper issue is uncertainty avoidance. People may hesitate when they cannot see the process, the precedent, or the likely outcome. In traditional Japanese organisations, fear of failure and reluctance to take on extra responsibility can slow initiative. Higa addressed this through a "can do" culture, reinforced by his own behaviour. He did not treat positivity as a motivational slogan alone; he used it as an operating principle. When the company hit obstacles, the question became how to respond constructively rather than retreat. In this sense, leadership is not about pretending risks do not exist. It is about reducing uncertainty, creating confidence, and showing people how to move forward despite imperfect information. What leadership style actually works? Higa argues that there is no single correct leadership style. The right style depends on the leader's personality, the business model, and the people being led. In his lumber and medical device businesses, important decisions were made by him and his senior team, creating a more traditional pyramid structure. In Domino's Pizza, however, the business required an upside-down pyramid because store managers created the value. The role of headquarters was to support the people closest to the customer. Higa's own preference was to lead by example, earn respect, and involve people in management decisions rather than rely on command-and-control authority. His broader point is that authenticity matters. A leader must understand their strengths and weaknesses and build a leadership approach that fits reality, not theory. How can technology help? Technology helps when it reduces the cost of failure and shortens the distance between idea and feedback. Higa's experience with Domino's flyers showed the problem clearly. The company spent heavily on printed campaigns, distributed them to stores and households, and sometimes discovered after two or three weeks that the campaign was ineffective. By then, the materials were already printed and the campaign cycle was locked in. His move into internet ordering and e-commerce was driven by a desire to make campaigns more flexible. If something did not work online, it could be changed quickly. This was an early form of digital decision intelligence. Today, leaders might use analytics, digital twins, scenario modelling, and customer feedback loops for the same reason: to test, learn, and adapt before small mistakes become large failures. Does language proficiency matter? Japanese language ability helps, but Higa stresses that cultural understanding matters even more. A leader can hire a language translator, but not a cultural translator. The deeper challenge is knowing what is being implied, what is not being said, which rules matter, which rules can be bent, and how trust is built. Language opens doors, but culture explains what is happening inside the room. For foreign leaders in Japan, even partial Japanese ability can signal respect and seriousness. However, the larger requirement is sensitivity to difference. Leaders must avoid judging Japanese practices simply because they differ from American, European, or other global norms. Respecting difference is the first step toward effective leadership. What's the ultimate leadership lesson? The ultimate lesson is determination combined with positivity. Higa has met many successful leaders with different personalities: some charismatic, some quiet, some brilliant, some surrounded by brilliant people. He does not believe leadership can be reduced to one formula. The common factor he sees is the ability to stay focused, remain determined, and not give up. Business always brings events beyond a leader's control: exchange rates, geopolitical shocks, climate change, pandemics, and market disruption. Leaders cannot control everything, but they can control how they respond. Reacting negatively does not help. The leadership challenge is to face negative situations with a constructive mindset and ask what can still be done. Author Credentials Dr. Greg Story, Ph.D. in Japanese Decision-Making, is President of Dale Carnegie Tokyo Training and Adjunct Professor at Griffith University. He is a two-time winner of the Dale Carnegie "One Carnegie Award" (2018, 2021) and recipient of the Griffith University Business School Outstanding Alumnus Award (2012). As a Dale Carnegie Master Trainer, Greg is certified to deliver globally across all leadership, communication, sales, and presentation programs, including Leadership Training for Results. He has written several books, including three best-sellers — Japan Business Mastery, Japan Sales Mastery, and Japan Presentations Mastery — along with Japan Leadership Mastery and How to Stop Wasting Money on Training. His works have also been translated into Japanese, including Za Eigyō (ザ営業), Purezen no Tatsujin (プレゼンの達人), Torēningu de Okane o Muda ni Suru no wa Yamemashō (トレーニングでお金を無駄にするのはやめましょう), and Gendaiban "Hito o Ugokasu" Rīdā (現代版「人を動かす」リーダー). In addition to his books, Greg publishes daily blogs on LinkedIn, Facebook, and Twitter, offering practical insights on leadership, communication, and Japanese business culture. He is also the host of six weekly podcasts, including The Leadership Japan Series, The Sales Japan Series, The Presentations Japan Series, Japan Business Mastery, and Japan's Top Business Interviews. On YouTube, he produces three weekly shows — The Cutting Edge Japan Business Show, Japan Business Mastery, and Japan's Top Business Interviews — which have become leading resources for executives seeking strategies for success in Japan. My Point Of View Ernie is someone I often see around town and he is a very hard worker. I would say he is probably the canniest entrepreneur I have met in Japan. A very impressive businessman and a great role model for the rest of us. He has excellent people and communication skills.




