Olympus urged to rehire ousted British CEO
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1
borscht
Good idea, but I wonder how many senior managers consider Woodford the bad guy for ratting out senior management (regardless if he was right or not) and would either refuse to work with him or undermine whatever reforms he instituted. Those types, of course, were probably unaware of the former chairman's illegal accounting, but might still be loyal to the man and not the company.
4
smithinjapan
"“Winning peoples’ trust will depend on reinstating Michael Woodford as president,”
I would say winning peoples' trust depends more on being non-corrupt rather than just the usual appearances, but that's me.
0
Ben_Jackinoff
I agree. Good idea.
I'm sure you will agree, but they should be tossed if they are not willing to work or cooperate with him, plain and simple. They can always follow the senior management who it is being suggested should step down
1
some14some
not advisable, not in the interest of Woodford who has already expressed about security concerns.
-1
Yubaru
Give the reigns back to Woodford and the power to make the changes necessary to bring the company back into the public trust.
This is a golden opportunity for one of Japan's leading corporations to make changes that mean something positive to the rest of the world!
-2
gaijinfo
Anybody would be a fool to take that position now. That being said, nobody, under any circumstances, likes a whistleblower.
5
edojin
Man ... can you imagine walking back into that hornet's nest ... !!!
0
It"S ME
His call, I wouldn't do it. For both japanese or overseas companies.
0
serendipitous
On the contrary, I think he would have a lot of power and respect if he did return. (Note for JT: In the second last paragraph, "100 billion yen" certainly isn't "$129 million").
-1
The Munya Times
So, it grew bigger than the greedy bastard thought at first. We hire someone to clear up the pigsty and bring back our big money and save our reputation. If he doesn't like it we can always kick a little @ss for good and teach him how to behave himself. No one can hurt us, we are the supreme feudal lords of the 21st century and can even kill the golden egg laying goose if we wish to do so, we are spoiled for choices and find another one any time. Be grateful we gave you a chance to kiss our @ss.
Wooow, something went wrong, no problem brothers we can hire someone a special adviser or decision maker who will tell us how to get rid of Woodford. And then someone again who tel us how to get rid of our advisers.
Wooow, something went wrong again, what can be the problem? It was a well laid plan and now people are telling us to stick our well laid plan together with our endoscopes up to our well laid @ss. Wooow that's strange.
What a drag. Mr. Woodford, if it is really such a big money you might want to hire some body guards. You read their mind the best.
-8
cactusJack
People never rehire anybody.
0
The Munya Times
cactusJack
Why not? No fooling here, I am serious! It's quite a matter.
0
CrazyJoe
If you're interested in taking a peek at Koji Miyata's site, (choice of English or Japanese).
Go here: http://www.olympusgrassroots.com/
3
Al Stewart
very interesting turn of events. Just a open question: is he doing this campaign sincerely or is he just trying to align him self with the side he thinks will come out clean when the fit hits the shan?
0
The Munya Times
Me personally think the best way for Woodford to get back if he really wants is, to apply a famous George Bernard Shaw quotes "I learned long ago, never to wrestle with a pig. You get dirty, and besides, the pig likes it."
Just wait until Olympus sinks its own boat (won't take long) and someone buys them up. He might join them now or find and persuade some big boys to do it, they will employ Woodford and then he can finish cleaning up the pigsty. Sure he will enjoy it.
0
pawatan
It's too bad. Stupid, greedy corruption takes down a long term, well respected company. I don't think Mr Woodford could do anything to save Olympus from being completely picked over at this point. Someone will buy the medical division and maybe Panasonic buys the imaging division (4/3 consortium partner)?
It's hard to see how Olympus can possibly recover from this death spiral, though.
-1
smartacus
Only the board can rehire him and the board know they would all lose their jobs if they do. He also wouldn't know who he can trust and who he couldn't trust. He'd have to bypass senior managers and department heads but who does that leave? You can't run a huge company with rookies. You need long-term staff.
Another point is that nobody likes whistleblowers, no matter how noble their motives. I doubt that even young employees would respect Woodford.
7
hatsoff
Apple. Steve Jobs.
-1
gogogo
Ganbare Woodford!
1
gogogo
Steve Jobs
-1
wdolan
Bet you quids that rehiring will never happen - the Japanese thinking is that they are never wrong and are quick to point out that they will do things their way, regardless, without any interference from "OUTSIDERS". It incapable of sorting out the problem.
2
pointofview
That should read almost 1.3 billion dollars.
-2
Reckless
Unfortunately I think he would not have the support of his Japanese employees. I could be wrong.
2
kaminarioyaji
Smartacus, perhaps it's because I'm British (and we generally champion the underdog), that I have to disagree with this. Can you tell us your reasons? I'm interested...
The board won't like it for sure, but anyone in the lower echelons at Olympus who might see some job security in their future if Woodford is re-instated and manages to salvage this wreck might give him a fair crack of the whip - He has the chops, no?
2
timtak
How many employees, shareholders and Japan Today readers think that Woodford was responsible for Olympus loosing 80% of its value, for creating the wreck that is now Olympus?
He could have threatened, he could have used his power when he still had it, but once he left, why did he need to tell the media ? Does he believe he acted in Olympus' best interests after his dismissal?
0
Fadamor
Interesting. If Mr. Woolford were being arrested for something, these comments would consist mainly of complaints about why his nationality needs to be mentioned. After 24 comments, not a peep about how this article brandishes his nationality - both in the headline and in the article's content. A double-standard? Or has the JT readership finally realized that not just the criminals are identified by nationality? I'm betting on the former.
-2
herefornow
Do they teach these words in Management 101 in Japan? What a farce, and why I say again that Japan's best days are way behind it and its slide into irrelevance in international business will only accelerate because the supposed business "leaders" are clueless and completely incapable of doing anything but responding according to the way it has been drilled into their heads -- circle the wagons, keep out the foreigners, and when the crap hits the fan bow a lot and say a lot of meaningless words until the story dies down.
0
oikawa
@Fadamor
I mainly agree with your sentiments, however in this case the person's nationality was part of the crux of the whole situation/story so it is completely logical to mention it in this instance
0
blackpassenger
if woodord is reinstated im most def buying tons of that stock.
-1
herefornow
timtak -- unbelievable, you are blaming the one guy you understood the concept of fiduciary responsibility and tried to protect the shareholder's for Olympus's problems. Did you follow this whole story? Woodward did exactly what any responsible person in his position, as newly appointed CEO, would do. He hired outside accountants to look into the concerns he had. Then when they reported the problems he raised his concerns with the CEO in a series of letters. Then, when he got the usual Japanese stonewalling, he demanded a board meeting to confront the issue, but got fired before-hand. Finally, when labled as "the problem", then and only then did he go public to make sure that investors understood what was really going on. And for this you want to blame him for 20 years of lying and cheating by the Japanese board? Sounds like you have adopted the Japanese attitude that it is only wrong if you get caught.
0
Fadamor
Not really that logical. He was fired for "cultural differences" (read: he wouldn't tow the corporate line and stay quiet), not because he was British. If being a foreigner was that big a problem, he never would have been hired as the CEO in the first place.
THIS story, however, is about how a former board member is starting a drive to get him reinstated, so the ex-CEO's nationality has even LESS to do with the story than when he was let go.
Granted, this is not a Japanese news agency that wrote this article, it was the Agence France Press so they may just make a big deal about ANY Briton in the news. I just thought it interesting what people concentrate on (or don't concentrate on) as they read their news concerning Japan.
-1
Hide Suzuki
Miyata san, you have my support, however little it counts. Hope you can bring him back to uncover all other dirts.
0
globalwatcher
Munya. Hope you can shift gears to the right direction for going forward. I would like to ask you if your management teams are offering a mandatory class "Business Management #401-Ethics" to all employees? This is a very critical element required if you want to remain competitive in global market. Hope your management teams are implementing this.
3
John Becker
Wild idea.... hear me out.
Am I the only one who is entertaining at least the possibility that this is a brilliantly orchestrated power play by Mr. Woodford? As I said, it's a wild idea. But here goes....
These shenanigans have been going on for years. As a member of upper management, Mr. Woodford could very well have been aware of what was going on long before his promotion to CEO. The current board members can't really say, "He knew about this all along" because they'd be hanging themselves. So he has the dirt and enough time to plan something.
He recruits Miyata-san, a respected company man and someone already outside the fray. And who, maybe, has an axe to grind with some or all of the board members.
So he sends the poison pen letter to the chairman, knowing he'll be fired. This gives him plenty of time to get clear before he tosses his grenade into the press. He presents himself as the conscientious whistle-blower who's looking out for the shareholders. Knowing the level of dithering, obfuscating, whitewashing and stalling in which the board will engage once they're exposed, he knows he'll look like a knight in shining armor, who only wants to save the company.
After letting things stew for a little bit, Miyata-san makes his statement and fires up a bilingual website, complete with a manifesto and a petition form. (The timing and tone of the website make me just a little bit suspicious.) This should be good for another 20% drop in the stock price. Olympus stock is down to ten cents on the dollar (which may be where it would have been anyway if the continuing losses were publicly known).
The pressure from within the company and from shareholders finally wins out, and the board resign en masse (or, anyone left is powerless and no longer an obstacle). The savior Woodford is appointed chairman and CEO and gets to name his own board, who will be rubber-stamped at an emergency shareholders meeting.
As I said, a wild idea. Probably only good for a bad movie. But is it at least possible?
0
hakuman
The only thing that will decide whether Mr. Woodford would not be CEO within a few weeks is if Mr. Woodford decides he doesn't want to be CEO. We are talking a Japanese company here. Anyone who has ever spent an extended length working in Japanese companies knows that business here is a battle in the background. This wasn't a case of whistle-blowing in the Western sense, this was a straight-up battle between a CEO and the board. The CEO doesn't whistle-blow, that's a term reserved for those who are under pressure from their bosses to keep quiet. He was the boss, and he was choosing his direction for the company.
The board didn't like it, and they had to make a move. Maybe they made a stupid one by throwing him out, or maybe it was the only move that they had left open to them. Whichever it was, they played their hand, and they lost. Simple as that. Woodford played a better game, and the final nail in the coffin has been hammered in by Mr. Miyata, in creating the site about which this article is based.
For Japanese companies (and Japan, and the Japanese), the outside appearance is everything. They will fight bitterly behind closed doors,and put on a good external front. Suits, politeness, bowing. But now, the secret things they were doing behind closed doors have been shown to the outside. They have been caught outright for doing bad stuff, and being Japanese, the only option left to them now is to give the appearance of remorse, and show intent to repent. Mr. Miyata, 70-year-old former senior managing director has expressed that he thinks Woodford should be reinstated. Remember, for the Japanese, age and title hold a degree of respect, and this man has both. His reasons for wanting Woodford reinstated are, for the company he loves. So now the board members are in the position that if they don't hire back Woodford, it is essentially saying they DON'T love their company, for the respected Mr. Miyata has quite clearly stated what love for the company requires.
If Mr. Woodford deigns to resume his former position, he has all the power. All of it. He was fired, and a few short (or long) weeks later, he is back. He won the battle. They can't fire him - he already showed him that. And beyond that, they need to show that they want to repent. Remember what the Japanese did after that little scuffle called World War II? They let the Americans in, they listened to what they said, kept their heads down, and worked their asses off. This is what the Japanese do. I remember reading back about the Meiji milk scandal happened in the early 2000s. The sales people, knowing that their hated company wouldn't exist in a few weeks, were still going out, going home-to-home to the people who had been affected, listening to their stories and making apologies. When asked 'why?', they said that it was what had to be done.
The staff of Olympus will listen to Woodford. Not even because they have to (which they do), but because it's what they do. They know the battle is over, now all that is left is survival and cleanup. He won't be the as$hole for 'whistleblowing', he is going to be the hero for exposing the corruption in the company.
0
Jared Norman
hakumen- The ceo is the boss of the company, the board of directors are supposed to just oversee operations.
1
sfjp330
Woodward tried to work on the problem internally with the Board. That got him nowhere so what else was he to do? Clearly Woodward was not going to play these Japanese accounting games. Would you rather see him just resign and leave Olympus and allow the company to continue the fraud? Woodward is in no way the guilty party here.
Moderator
The man's name is Woodford.
0
The Munya Times
globalwatcherNov. 15, 2011 - 02:17AM JST
My post was an imaginary vision of Olympus board members mentality and neither opinion nor suggestion. Kind of thinking that led them there. Sadly not only Olympus. This mentality is prevailing on wide scale, destroying business moral and human civilization that societies built over hundreds of years.
-1
NetNinja
Fired for cultural differences? Well, okay, he's NOT Japanese. So naturally he's going to be culturally different.
Why make him CEO just to fire him?
It's not fair to ask foreigners to be like Japanese and not allow them the same rights.
All one needs to be at work is NOT Japanese. It's simply be Professional and Courteous in the workplace.
0
globalwatcher
Munya, thank you for the clarification. I've got it.
0
Goals0
hakuman, the Meiji milk scandal?
Do you mean Yukijirishi - Snow Brand?
Moderator
The topic is Olympus.
0
hakuman
Goals - yes, that is what I meant.
-1
rickyvee
this is the worst idea ever. woodford can not lead olympus anymore either. yes, he did a good deed by uncovering the shady deals of the past, but most company employees probably hate his guts for placing the company in a bad light. olympus needs to have a clean slate.
1
Jack Stern
I think the best thing for him to do is to write a book and sell it to Hollywood.
0
tokyokawasaki
I think he should say in the press, thanks but no thanks. I now work for Canon.
-1
hakuman
RickyV - you are attributing western behaviors, morals, and motivations to a Japanese company. That's not how things work in companies here. Whether or not the members hate him or not is irrelevant. Hate or dislike, anger, these are their honne - their inner self. But what their actions will reflect their is their tatemae - their outward appearance. And for appearances sake, they have to be repentant, and strive on. This is a group society. The primary importance is group harmony so as to ensure the survival of the group. It's what they do on an instinctive level.
Woodford has won this battle. Maybe not the war, the Japanese work more long-term than westerners and therefore his opponents may wait a lengthy period of time before making their next strike. But for the time being, Woodford has the upper hand.
0
seesaw1
I think in Japan they do....but would Mr Woodford want to go back to face those he brought shame to?
LOL. perhaps he could title it as Memoirs of a CEO in Japan Inc...:).
-4
Elbuda Mexicano
I wonder how many Brits here would be yelling and complaining say if it were a British company and a British scandal but having a Japanese whistle blower?? Just food for thought mates, but anyway good luck to Woodford san!
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