executive impact

ALC: Fostering global communication

4 Comments
By Chris Betros

Anyone familiar with the English-learning industry in Japan will certainly have heard of ALC Press Inc., which has been engaged in the educational field for 46 years. ALC operates in three business segments. The education segment is engaged in the production of correspondence educational materials and e-learning materials, the provision of digital contents and English test services, overseas study support for juniors, the operation of English language classes for children and the opening of events. The publication segment is engaged in the publication of monthly magazines, quarterly magazines, online dictionary and books related to language study. The third is the training segment which provides development of human resources to corporations and educational institutions, including domestic and overseas training programs.

With its mission of “Networking for Global Communication,” ALC started with the publication of ENGLISH JOURNAL, a monthly language magazine, followed by the release of 1000-Hour Hearing Marathon, a correspondence course for those wishing to perfect their command of English.

Overseeing ALC’s operations is Toru Noda, president and CEO. After graduating from Keio University, Noda received an MBA from Harvard Business School. He joined Mitsubishi Corporation in 1984, was chairman and CEO of Berlitz International in Japan in 2003, followed by a term as CEO of Seiyu GK and CEO of Wal-Mart Stores Inc in Japan in 2010. He became CEO of ALC Press Inc. in 2012.

How has business been since you became CEO?

We restructured the company three years ago and set new targets. Last year, we had a really good year, while 2015 has been average. We are not growing as fast as we would like. So for 2016, our focus will be on building new businesses in the language communication area. We used to be mainly a publishing company. But the publishing business is declining and we plan to focus on more practical English communication.

What are the biggest changes in the industry compared to a few years ago?

The biggest change in the industry is the shift to digital or online learning. Another change is that a lot of businesspeople want to focus more on practical communication rather than simply reading or writing. They need to communicate by speaking and being able to listen better.

We are adapting to those changes. For example, learning to speak English with an instructor by using Skype is dramatically growing in popularity. Another area is language learning by smartphones. Business people and students like to use their break time to learn English and they prefer their mobile devices because they enable visual and aural means for learning a language. It’s the best method for improving language proficiency.

How well known is ALC?

It is well known among Japanese students and old-timers who used the Hearing Marathon and ENGLISH JOURNAL, even though these days, we have diversified our products and services. We are shifting toward Internet-based advertising and promotion, such as on Facebook.

Our customer base is in their 40s to mid-50s. We used to have a large customer base much younger but our business model is getting old, so that’s why we are trying to build new businesses aimed at younger customers online.

However, our core customers are still not that tech savvy, so we need to have dual services – the old-fashioned way like publishing and new technology. The CDs are still popular with old-timers.

How is ENGLISH JOURNAL doing?

Its circulation is about 45,000 and we are maintaining that number. With ENGLISH JOURNAL, first we get sponsors, and then send the magazines to bookstores, where we recoup our investment.

What about the 1000-Hour Hearing Marathon?

It’s a correspondence course for those wishing to perfect their command of English. It is popular and selling well. Originally, the ENGLISH JOURNAL was developed for Japanese persons to get some English skills. But a lot of customers say that isn’t enough, volume-wise and does not show them how to actually learn the language. So we developed the Hearing Marathon, mainly aimed at mid-level and advanced English learners. You can acquire high skill sets after 1,000 hours.

How did the 2011 disaster affect business?

There was a downturn in business but there were also some positive effects. A lot of companies decided to set up manufacturing bases outside Japan for their components and raw materials. So they had to send more people overseas and those employees had to learn English.

What do you see ahead?

The 2020 Olympics, of course, will have a very big impact on our business. Dynamic social changes will happen, and not just for the Olympics. Many Japanese companies and government agencies are seeking new opportunities outside of Japan with new offices. For that, they need English speakers.

How many employees does ALC have?

If we include part-timers, we have close to 500 staff, and an additional 300 online language instructors all over the world. We have a very stable staff with low turnover, except in the IT area. Our core staff members are editors, and in marketing, sales and promotion.

You received an MBA at Harvard. Do you think an MBA is a valuable asset in today’s corporate world?

Definitely. It provides a personal network if I need to reach someone or some company.

What’s your management style?

The executives need to think and act by themselves, so I try to develop people who can do that. I try to get information in the field. The best way to do that is by going to bookstores, meeting customers and learning how we can help them. Those insights help us to establish new businesses.

Do you use English every day?

No, I don’t. To keep up my English ability, I like to watch movies without subtitles, especially if I know the storylines. I read newspapers in English and magazines like National Geographic.

What is a typical day for you?

I show up here at 7:30 a.m. I spend about two hours on strategy planning, then prioritize them and focus on 3-4 items. I try to participate in meetings and collect information. About 15% of my time is outside of this building. On a typical day, I try to leave about 6 p.m. I do encourage a work-life balance among the staff.

How do you like to relax?

I used to play soccer and enjoy watching J.League, as well as baseball and basketball. I walk a lot, too.

© Japan Today

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4 Comments
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Big fan of the company. Helped me learn Japanese.

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We have a very stable staff with low turnover, except in the IT area.

That doesn't sound so good.

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It's online dictionary is still the best.

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I have their N4/N5 JLPT Study Guide. I'm SO upset... The whole thing is in Japanese!! ;-)

Seriously, I have the audio CDs in my car's sound system and I play them while driving to and from work. It definitely helps simulate an "immersive" environment when I live in an area with almost no native Japanese speakers.

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