story 2019.06.18 Mike Ishizaka’s Future Golf Diary Vol. 3: Looking at the Commonalities and Major Differences Between Japanese and American Golf from the US. Accelerating Overseas Expansion and Feeding Insights Back to Japan Nobuya Mike Ishizaka Golf future diary Innovation The 2019 Masters tournament in April was won by Tiger Woods. It was his fifth victory at the Masters and his first at the tournament since 2005. It was also his first win at a major PGA tournament in 11 years, with his previous being the victory at the US Open in 2008. Woods’ comeback garnered major media attention in Japan. Mike Ishizaka watched the tournament in Augusta first-hand, and having seen Woods’ comeback, we ask him about golf’s position in society in Japan and the US, as well as the future of GDO, which continues to accelerate its overseas expansion. Mike Ishizaka: Born December 10, 1966. A graduate of Seikei University and a holder of an MBA from Harvard University, he spent 10 years with Mitsubishi Corporation before leaving in May 2000 to found Golf Digest Online (GDO), where he serves as president and CEO. As a general golf services company, GDO actively pursues a business model that combines golf and IT. It was listed on the Mothers section of the Tokyo Stock Exchange in 2004 and moved to the First Section in September 2015. The GDO website is visited by more than 19 million people each month, and currently has more than 3.8 million club members. ——Tiger Woods’ comeback victory garnered major media attention in Japan, even featuring on mainstream talk shows. How do you think his victory will impact the golf industry?I think it is significant in two ways. First, Tiger Woods is a major household name, even among non-golfers. He overcame his past scandals and made a seriously successful comeback after a decade or so of few achievements as an athlete. Even throughout the history of sport this is almost unheard of. Seeing a story like this come out of the world of golf and impact society is incredibly meaningful for the industry. Second, the fact that his comeback victory was at the Masters is also significant. The Masters is perhaps the most special event of all four majors. The tournament is unique even among other sporting events and has developed a reputation as a highly successful event over the course of its long history. Although Woods’ real comeback victory was at the season-ending Tour Championship in September 2018, this victory at a major tournament, particularly as it was the Masters, perhaps made it more memorable among the public as his true return. I once again recognized that golf is lucky to have tournaments like this that can be the stage for wonderful sporting stories. Tiger Woods winning the Masters for the first time since his victory in 2005 (Photo: GDO News)——On our in-house social media platforms, you referred to the Masters as the best, most unique, and leading form of entertainment. What sets it apart in terms of interest and entertainment compared to other sports competitions?The Masters is unique in that it incorporates a range of elements other than simply the tournament itself. The tournament schedule begins on Monday. Between Monday and Wednesday, which are for the Practice Rounds, spectators can come along and take photos or videos with their cameras. Wednesday is reserved for the Par 3 Contest, a mini tournament on a short course on which players often bring their family members or children. During the contest, spectators—also known as patrons—get a glimpse into the players’ skills, their relationships with one another, and their relationships with their family members. As a result, different generations and genders get to play on the same course together and chat, which is one of the appeals of the sport. Moreover, various other elements that highlight the competitive nature of golf are incorporated into the contest, making it a core, exciting part of the overall celebration. The tournament itself is held between Thursday and Sunday, and the atmosphere changes instantly. Strict control gates ensure that smartphones and other communications devices are not taken onto the course, and both players and spectators spend the day without their phones. With no information coming through their smartphones from the outside, spectators can fully immerse themselves into the players’ developments using all their senses, creating their own stories. While it is a sporting tournament, it offers the same level of entertainment as a Broadway stage performance. Of course, annual capital investments in the tournament as the standard for golfing competition, as well in cutting-edge tech, have ensured that the Masters is what it is today. Particularly recently, however, the tournament has created a richly entertaining venue and enhanced its operations. This is what sets the Masters apart from competitions in other sports. Mike Ishizaka speaking about the entertainment side of the Masters——You took up residence in the US around a year ago—What can you tell us about the differences in how people in Japan and the US perceive golf? To start with, US society is much more accepting of diversity than society in Japan. Perhaps because of social stratification, but the US respects a range of freedoms, as well as people’s individuality and independence. Just as Japan is known for its neutral and homogenous society, its diversity and tolerance are somewhat limited. The same goes for the world of golf. While there are aspects of golf that value tradition and history (much like Japan), such as members-only clubs comprising socially and financially successful individuals, on the other hand, it is also a sport that can be casually and easily enjoyed by anyone. In this sense, there are diverse ways to enjoy golf, as well as diverse attributes among those who enjoy the sport. In Japan, however, this level of diversity in golf is not quite there. Elsewhere, in the US, charitable deeds and volunteering are an established part of culture. It is normal for successful individuals from the abovementioned members-only clubs, for example, to give back to society of their own accord. The relevant tax systems are also in place. There is also a significant difference in how golf contributes to society. In the US, golf tournaments have historically been known as forms of entertainment that give back to society, with the total amount donated to charity by men’s golf tournaments since 1940 said to be around 300 billion yen. Rather than just being a sport for golfers, in the US, golf has made significant progress as a sport that gives back to wider society. Although in Japan, too, there are tournaments that continue to donate to charity—with awareness of the importance of charitable donations growing since the earthquake in 2011—we cannot say that social contributions and charitable deeds are rooted in Japanese society. And so, in addition to contrasts in the diversity of playing styles, there are major differences between Japan and the US in terms of golf’s importance and position within society, and the level to which the sport gives back. Ishizaka says there are huge differences in how golf is perceived in society in Japan and the US (Photo: GDO News)——How has life been for you in the US?I still haven’t got used to it if I’m honest. In Japan, for example, in corporate settings it can still be difficult to forthrightly ask for a day off due to your child’s school commitments, but in the US, people will unreservedly use personal circumstances to ask for a day away from work. Even CEOs do this, and so at first I was quite shocked. As a matter of course and a personal right, in the US private life and family take precedence over work. This approach is firmly rooted in society, and as a basic mindset it is completely different to that in Japan. Even now in Japan, we are trying to make it compulsory for people to use up their paid holidays or implement workstyle reforms. Without these rules and foundations in place, we know that nothing will change. Perhaps this order of precedence in Japan became established following its period of rapid economic growth. It has spread as an individual mindset rather than due to social systems or corporate measures, and so it might simply be a difference in culture. Personally, I still don’t know what the reason for this difference in culture is. Part of me still sees it as strange how people in the US prioritize their private lives, and so this probably means that one year isn’t enough to change the Japanese business practices and lifestyle approaches that have been ingrained in me for such a long time. Ishizaka says he was initially surprised at the cultural differences between Japan and the US——Why is it that you decided to take up residence in the US?The biggest reason is that the US is the very center of the golf industry. Another reason was that to progress our overseas expansion, and to take in changes in technology and business, Japan alone would not provide enough stimulation. Japan has been suffering from deflation for around 30 years now and real growth has ceased. No importance is placed on investments in possibilities, and the population is declining, too. In the US, the population is increasing, and as I mentioned above, people’s perceptions of and feelings toward sport, entertainment, and leisure are incredibly diverse and free. This aspect is very stimulating. Coming to the US and experiencing the differences to Japan first-hand has been somewhat of a shock, and something that I definitely wouldn’t have experienced through business trips alone. I don’t think it is possible to create future businesses without coming into contact with this diversity. This is why moving forward, regardless of English ability, I hope to be able to send GDO employees on rotation to the US, even if it’s just over the short term. The idea is to have as many GDO employees as possible gain first-hand experience of these wide-ranging viewpoints and perspectives, as well as the stimulation this provides, as early as possible. In Japan, people are punctual and keep to their promises, giving others peace of mind and comfort, and this is already a unique Japanese trait. I’m convinced that if we are to compete on the global stage, we will need to develop outside of Japan. It is also highly likely that overseas approaches will be adopted in Japan. Moving ahead, while accelerating our overseas expansion, I will work to feed the inspirational ideas and information I gain over here back to Japan. To date, we have rolled out steady initiatives overseas and as such the results have been modest. As we have sowed the seeds for various businesses, I realize that there has been some criticism. That said, I have finally seen a promising sign. We are currently moving forward with preparations to make an announcement. ——It seems as though there have been some very positive benefits from you moving over to the US. When considering the future growth of the company, setting up residence in the US as CEO has been the right choice. Having direct access to correct local information, as well as a first-hand sense of the market, has enabled quick decision-making. At the same time, it has ensured we can quickly bring new ideas and information back to the Japanese market for new developments. For a while now I’ve been on the board of directors at GOLFTEC—which we recently made into a GDO Group subsidiary—and while incorporating Japanese ideas and using my own experience, I have been offering advice on its US business. At GDO, mainly through GOLFTEC, we will continue to proactively expand our US businesses. Although it will be tough, I’m very excited for what the future holds. In the medium to long term these developments will be highly significant for GDO, and I’m determined to push through any objections that might arise. In the future, the key will be how to follow through with our beliefs. Text: Tomoko Tsutsui; Photos: Shintaro Tsunoda; Composition: Tomoki Tani, Play Your Life Editorial Department Share this post Return to List Related Stories “Special Day” for Children, the Community, and Ourselves enters its fourth year Nobuya Mike Ishizaka 2024.05.01 John Ashworth on the philosophy of his brand, LINKSOUL Nobuya Mike Ishizaka 2023.10.02 Mike Ishizaka's Future Golf Diary Vol. 9: A 'Democratized' Service that Goes Beyond Locations and National Borders Nobuya Mike Ishizaka 2023.09.04 Mike Ishizaka’s Future Golf Diary Vol. 8: Why the CEO Moved to the US Innovation 2022.08.30 View More