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INTEGRATED REPORT 2023 Online Ver.

CPO

People StrategyMessage from the CPO

Leveraging our rich heritage of beauty, we are striving to create the “Beauty Innovation Atelier,” a dynamic and invigorating workplace environment and culture to become an even more energetic company.

Executive Officer
Chief People Officer (CPO)
Shinji Wada

Leveraging our rich heritage of beauty, we are striving to create the “Beauty Innovation Atelier,” a dynamic and invigorating workplace environment and culture to become an even more energetic company.

Our People and Culture: Strengths and Challenges

Since joining Shiseido in October 2023 as CPO, I have had many discussions with employees and carefully analyzed the results of various employee surveys. They gave me an insight into strengths of Shiseido’s people and culture along with the challenges that we are facing today.

My first impression was that Shiseido has a positive and friendly work environment, where people have a strong sense of respect and pride for our brand. There was a significant progress in gender and career diversity, as evidenced by various indicators. I was also impressed with the Company’s efforts in strengthening its foundations as a global company by continuing proactive investments in our people and advancing human resource policies based on our PEOPLE FIRST philosophy that defines employee as the ultimate source of corporate value, while preserving our beliefs and values over a long history of more than 150 years since the foundation. However, I believe there is still room for improvement in the strength of energy in our people to drive transformation for the future. Therefore, it is imperative for us to develop a people strategy to create an organization and culture filled with a strong sense of determination and energy to become a top-tier global company.

Our “Beauty Innovation Atelier” Workplace and Culture

Band performance by employees at the Welcome Celebration 2024 event for Shiseido Group in Japan
Band performance by employees at the Welcome Celebration 2024 event for Shiseido Group in Japan

It is my aim to create a structure that brings positive energy to employees through their work, transforming our people and organization into a world-class company. For example, let’s imagine that we have a vision for our organization to be just like one of the greatest symphony orchestras in the world. In that case, we must have the best orchestral musicians in the world who are driven by extraordinary passion and lifelong dedication to mastering their instruments and performance skills. Each position is essential, all filled by musicians recognized around the world for their outstanding performance. Everyone is judged based solely on their performance regardless of gender or nationality. To deliver a remarkable performance as an orchestra, every member must listen to and understand different parts of the music played by others very well, making sure that everyone is aligned to create beautiful harmony together. It is through this collaborative teamwork of an orchestra that brings one of the most beautiful symphonies in the world to life.

Based on such a way of thinking, Shiseido has defined the “Beauty Innovation Atelier” as a global aspiration for the workplace and culture contributing to value creation. We want every individual to be passionate about their work, collaborating harmoniously with one another instead of operating in silos, and constantly pursuing the highest quality in delivering results. Our idea is to create an environment that can continuously drive beauty innovations one after another.

In this context, “Passion” means sustainable engagement with intrinsic motivation. Rather than simply implementing skill set development program, Shiseido aims to tap into this intrinsic motivation in each employee and exploit the energy that drives their passion. Improving employee engagement is a crucial focus for Shiseido as we strive for further growth in a challenging external environment. Several studies have shown that there is a positive correlation between corporate initiatives to drive employee engagement and a company’s business performance. By fostering enthusiasm and drive in their work, employees naturally maintain high levels of engagement (passion) and ignite it further. Therefore, Shiseido has dedicated significant efforts that can raise employee energy levels and identified eight passion drivers. We are undergoing a comprehensive review of our human resource policies and programs to ensure their effectiveness in improving these passion drivers as we move forward.

passion drivers

The Framework for Our People Strategy

Shiseido’s people strategy takes the following three-pillar approach. The first aspect is “Build Talent.” This means developing talent among current employees to create a culture that fosters both individual empowerment and organizational growth. To empower individuals, we will focus on creating innovation and enhancing leadership capabilities while continuing existing programs. We will also implement human resource policies and programs aligned with the passion drivers to boost energy levels. Simultaneously, we will pursue organizational development by implementing initiatives that improve quality of relationships and foster cross-organizational collaboration, which will also lead to forming many “weak-ties” and inducing “chemical reactions” between individuals. Moreover, we promote a corporate culture where individuals, regardless of their gender, age, nationality, or other attributes, recognize and respect the differences between each other, encouraging constructive discussion on creating new values. The second aspect is “Acquire Talent.” This aims to attract top talent from around the world to further accelerate our transformation. We are reassessing our recruitment processes to ensure higher standards and investing efforts into recruitment branding to attract even more talented people in the future. We recognize that relying solely on training takes time, so we believe it is crucial to strike a balance by adopting a dual approach of training and recruitment.

The third and final aspect of our framework is to “Transform Organization and Enable ‘Work Smart’.” We will fully leverage AI and IT tools to optimize our operations and create a highly productive organization.

Roadmap for Our People Strategy

In 2024, we will focus on training and recruiting individuals who have strong leadership, enabling us to drive change and surpass our present circumstances. Based on the “Beauty Innovation Atelier,” we will promote a series of initiatives aligned with the passion drivers, seeking to transform ourselves into a nimble and agile organization. Furthermore, we are committed to maximizing everyone’s passion, contributing to the creation of new value over the medium-to-long term.

My Ambition as CPO

Having worked in both startups and at the U.S. headquarters of a major global company, I have gained valuable experiences in building diverse global teams from scratch and transforming systems and culture to support rapid business growth. I have also led structural reforms under challenging circumstances. Based on these experiences, I believe that for Shiseido to thrive in the global marketplace, we must be more passionate about driving growth on a global basis with an unwavering commitment to achieving our goals. Our aim should not only be to compete with the world’s best-known beauty brands but to surpass them. Shiseido possesses many strengths, and by setting clear and specific goals, channeling and focusing our energy towards achieving them, enhancing our capabilities for value creation, and providing strong leadership, we will fulfill our corporate mission of achieving BEAUTY INNOVATIONS FOR A BETTER WORLD.

As CPO, my goal is to bring about this transformation.

At the same time, it is my aspiration to establish a strong foundation for Shiseido’s talent brand globally. To achieve that end, I am dedicated to contributing significantly to bring about positive changes within Shiseido with respect to its people, culture, and organization by transforming it into a company that is instantly recognized and admired as a top-tier organization just by its name.

As CPO, I am committed to making a significant contribution to Shiseido by driving transformation across the organization, its people, and its culture. There is much to look forward to.

April 2024

Major Initiatives

  • [Human Resource Systems and Organizational Development]

    • Job-grade-based HR system fully introduced in Japan to place the right people in the right positions (from October 2015 for managers, from January 2021 for employees of career path positions)
    • Global Grade System introduced to serve as a common framework for the Shiseido Group
    • Group-wide bonus program (One Shiseido Bonus Program) implemented for overseas regions
    • Global engagement survey (positive global overall engagement score of 65% in 2022. Survey conducted every two years)
  • [Training]

    • Career mentoring program that allows employees to have conversations with managers other than their direct supervisor (184 participants in 2023)
    • Ongoing global leadership training programs conducted (153 participants in 2023)
    • LinkedIn Learning expanded globally as a platform that gives employees autonomy over their professional development (Approx. 14,000 participants in 2023)
    • Shiseido Future University launched to nurture next generation leaders (from November 2023)Shiseido Future University
  • [DE&I]

    • Reverse Mentoring implemented in Japan, where younger employees act as mentors to leadership level (148 participants in total over the past 5 years)
    • NEXT LEADERSHIP SESSION for WOMEN training conducted in Japan to foster women leaders (266 participants in total over the past 7 years)
    • Mentoring program Speak Jam implemented in Japan to foster women executives and women employees (165 participants in total over the past 4 years)
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