High achievers in the European business community

When it comes to high achievers, the European business community in Japan has its fair share. But few likely top the accomplishments of Dirk Hermans. Director of Tokyo region audit services for Deloitte Touche Tohmatsu, Hermans is not only a top accounting advisor and specialist in financial reporting. He also finds time to spar with a Thai boxing trainer and help his wife run an upscale restaurant. In addition, he recently completed his doctoral degree.

“When I think back at school and university,” he says, “I think I was quite competitive. Also at sports, I’m quite competitive. So I think that also helps at work; at being more driven, and trying to achieve results.”

Achieving results for clients is what Hermans does at Deloitte. As a cross-border expert, Hermans works on quality assurance for outbound capital-raising transactions and audits. He also does reviews for inbound clients that use international rules. The native of Aachen, Germany, naturally heads up the firm’s German desk for assurance, financial reporting and enterprise risk services, working with foreign subsidiaries here and Japanese firms doing business overseas.

Hermans also offers his expertise to the EBC Financial Reporting Committee.

“It’s still in its early days,” he says of the committee, which was formed only a year and a half ago. “We’re trying to recruit more members. But I really enjoy the discussions. I think it’s helpful. Maybe the benefits are not as immediate as those of some other committees that lobby for the removal of barriers to trade, but I think the lobbying we do for the alignment of Japanese and international accounting frameworks is equally important.”

He adds: “I think that you also get good educational benefits if you go there and take part in the discussions.”

Originally from a small town, Hermans arrived in the world’s largest metropolis six years ago, following stops in London and New York. Three years ago, he completed a doctorate in finance, specialising in the research areas of organisational structures and foreign exchange regimes and, ultimately, completing a dissertation on the implications of a new accounting standard on revenue for company valuation models used by equity analysts. Hermans believes this extra-curricular study helps make him better at his current job.

“I think it gives me a broader perspective,” he says. “I guess I’m an academic person. I could imagine, in maybe 20 years, doing an engagement with a university.

“I enjoy the learning experience,” he adds. “I also like that it’s free from politics. It’s just about the learning experience itself. I like that about it.”

The differing accounting standards between Japan and Europe can be a major point of contention for firms looking to invest in this country. Significant costs can be incurred in trying to manage the two systems. But, although he says more work needs to be done in this area, he’s hopeful that Japanese attitudes are slowly changing.

“I don’t know if, ultimately, it will be exactly the same,” he says. “But the movement goes towards convergence, which is also good for European companies with subsidiaries here. For them, it’s a significant cost because they have to reconcile the two [systems]. It’s not always clear if what they do in Japan is acceptable under international standards.”

Under Abenomics, the government is also supposedly moving towards dropping many unnecessary duplications and to accepting international standards in various sectors. Hermans is positive that this will be reflected in the area of financial reporting as well.

“Right now, it’s voluntary in Japan,” he points out. “But many firms think it is beneficial. So I am positive about Japan.”

Hermans also remains positive about getting up early once or twice a week to practice Thai boxing — or Muay Thai, as it’s also known. The sport can be brutal, involving punching, kicking, grappling, and elbowing to the head. Despite his competitive nature, Hermans says he only takes part to stay in shape.

“I’m not doing competitive fights,” he says. “I’m only [working] with my trainer. It’s not dangerous. He’s not hitting me so hard.”

DO YOU LIKE NATTO?

Time spent working in Japan: I’m in my 6th year now, so about 30% of my career I’ve spent in Japan.

Career regret (if any): Not having explored the variety of our service offerings at Deloitte earlier in my career but I’m catching up now.

Favourite saying: There is no harm in falling down … as long as you get up, reflect on the experience, and try again.

Favourite book: Fiction: "The Analyst." Non-Fiction: "Making Globalization Work."

Cannot live without: My family, sports, and Thai food.

Lesson learned in Japan: Cultural sensitivity matters.

Secret of success in business: Appreciate different perspectives.

Favourite place to dine out: Ananda Thai (my wife’s restaurant in Akasaka).

Do you like natto? I have it once in a while because it’s healthy and high in protein.

© Japan Today