5 Minutes with Dan McGrath, Managing Director of Titan Consulting – Interview Two

Your Practical Guide to Recruiting and Building a Team in Japan

In our final interview with Dan McGrath, Managing Partner of Titan Healthcare in Tokyo, we dive into the practical steps for UK #healthtech and #medtech companies looking to build a team in Japan. Dan draws on his 20+ years of experience to provide a clear roadmap for success in this unique and rewarding market.

Doug: In our last chat, you said getting the first Country Manager hire right is the most critical decision. What specific skills and background should a UK company look for in that person?

Dan: This is the million-dollar question. Firstly, you need a proven revenue generator and a consultative seller. The ideal candidate has a track record of successfully launching new products or services in Japan. They need to have a deep network of contacts and be able to open doors from day one. But beyond that, they must be a cultural bridge. Look for a Japanese national who has significant experience working for international companies, or perhaps a foreign national who has lived and worked in Japan for a decade or more and is truly bilingual and bicultural. The latter option is actually becoming far more prevalent than say, compared to a decade ago.

They also need to be comfortable with ambiguity and have a true start-up mentality. In the early days, its a bit cliched, but they will be wearing many hats, from negotiating with distributors to dealing with regulatory paperwork. Someone who comes from a very structured, siloed, large corporate environment might struggle with the hands-on nature of a market-entry role. You need a builder, not just a manager.

Doug: How does the recruitment process itself differ in Japan compared to the UK? What should leaders prepare for?

Dan: The biggest difference is the timeline and the emphasis on consensus. The hiring process in Japan is generally longer and more thorough. It’s not uncommon for candidates to go through multiple rounds of interviews with various stakeholders. This is part of the consensus-building culture; the team wants to ensure the new hire is a good fit for the group harmony. UK companies need to be patient and not try to rush this process. Another key difference is the negotiation and offer stage. In Japan, the concept of a “lifetime employee” is still influential, so changing jobs is a very significant life decision for a candidate. They will be very thorough in their due diligence on your company. Counter-offers are common, and candidates will rarely resign until they have a firm, written offer and a clear understanding of the entire package. It’s a much more formal and deliberate process than perhaps what many UK leaders are used to.

Doug: Once that first leader is in place, what are the key challenges in building out the wider team, for example in clinical, regulatory, or commercial roles?

Dan: The main challenge is the scarcity of bilingual talent, especially in highly specialised technical roles. For example, finding an experienced Regulatory Affairs leader who can communicate effectively in both Japanese and English is incredibly difficult. Especially when you also need that solid track-record one NDA’s behind you and strong contacts with the PMDA. For typical R&D build-out’s, keeping close ties with top talent in QA, PV and RA (usually the first 3 hires) is critical and this is where you definitely need a recruitment partner with a deep network. These candidates are often not actively looking for jobs; they need to be proactively headhunted and require frequent touch points. Again, in Japan, forging long-term relationships is key.

For commercial roles, whilst perhaps a bit easier, the challenge is finding people who can operate in a Western style sales environment while still respecting Japanese business etiquette. You need professionals who are assertive and can drive results, but who also understand the importance of building strong connections with stakeholders. It’s a delicate balance. My advice is to prioritize hiring for adaptability and cultural intelligence, not just technical skills.

Doug: Titan has been recognised for its work in Diversity and Inclusion. How important is building a diverse team for a foreign company’s success in Japan?

Dan: It’s becoming increasingly important. Traditionally, Japanese corporate culture has been very homogeneous, but that is changing. For a foreign company, building a diverse team is a huge competitive advantage. It signals that you are a modern, progressive organization, which is very attractive to the younger generation of Japanese talent. It also brings different perspectives to the table, which is essential for innovation.

We work with our clients to pinpoint what type of professionals they want to engage with, and we actively encourage them to consider a diverse slate of candidates, particularly focusing on developing female leaders. In a market as tight as Japan’s, you cannot afford to overlook any segment of the talent pool. A commitment to diversity will not only help you attract better talent but will also lead to better business outcomes.

Doug: Finally, what is your number one piece of advice for a UK CEO before they even start the search for their first hire in Japan?

Dan: Get on a plane. You have to come to Japan and experience the market for yourself. Meet potential customers, talk to industry experts, and get a feel for the business culture. You cannot understand Japan from a boardroom in London. This personal investment of time shows the market that you are serious and committed for the long term.

Before you even think about a candidate, you need to have a clear story. Why Japan? Why now? What is your unique value proposition for the Japanese market? Having a compelling answer to these questions is the foundation of a successful market entry. It’s what will attract your first leader, your first employees, and your first customers. Come here with a humble and learning mindset, and you will find that Japan is a market that is very much open for business.

Interested In Doing A “5 Minutes With” With Me?

Get In Touch Today…