"Management's Aspirations" features interviews with managers who have overcome various challenges to hear about the aspirations they value as managers and the thoughts they want to achieve through their businesses.
In our second edition, we invited Mr. Masaro Niidome, President of DISCO Inc., to talk about future business challenges and Taishi Mizutani, who is in charge of investment, to talk about his perspective.
【Profile】
DISCO Inc. President Masaro Niidome
Graduated from Doshisha University. In 1987, he joined DISCO Inc. as a new graduate. Started his career in Osaka. After being transferred to the head office, he worked as a manager of the sales department, the research and marketing department, the recruitment and public relations department, and the IT promotion department. Appointed director in 2010 and president in October 2016.
[What's DISCO Inc.]
Founded in 1973. It provides information and services related to human resources to society, and develop services related to "employment" and "higher education." Centering on the employment information site for new graduates, "Caritas Job Hunting," it offers everything from planning and proposals for publicity activities related to corporate recruitment, to consulting and outsourcing. In addition, the Boston Career Forum, an employment event for bilingual job-seekers, boasts a history of more than 30 years. It was forced to be held online due to the corona crisis, but in 2022 it will be held locally for the first time in three years.
Provide a first meeting between students and companies
ーPlease tell us about the business of DISCO.
Niidome We are developing various human resources-related businesses, centered on supporting the hiring of new graduates by companies. Originally, we published a job information magazine called "Nikkei Job Hunting Guide" in a business partnership with Nihon Keizai Shimbun. In 2015, we launched our proprietary job information website for new graduates "Caritas Job Hunting." It is used by 400,000 students every year.
In addition, we are promoting the growth of "people" and "organizations" through the operation of international student recruitment events held overseas such as the "Boston Career Forum," etc., the business solutions business that undertakes recruitment selection work, and services related to higher education.
ーIn recent years, the forms of services that support the recruitment of new graduates have diversified. Why are you keeping the media as the main focus?
Niidome For students who have never worked in the society, the process of searching for a job that they want to do while gathering various information is indispensable. Some students pinpoint the industries and companies they are interested in, but most of them first collect a wide range of information and narrow it down from there. We believe that the existence value of employment information media that provides that "first encounter between students and companies" will not change.
Our mission is to convey the attractiveness of companies to students as much as possible through recruiting publicity, and to have them work with peace of mind and a sense of purpose even after joining the company. We have our own screening criteria for publication. In addition, due to the business tie-up with Nihon Keizai Shimbun, there are many transactions with major companies and financial institutions. Students have the impression that "Caritas Job Hunting" is strong in major companies and the financial industry, and that the quality of the companies listed on the website is high.
Speedy response to the adversity of the corona disaster by going online
ーPlease tell us about the situation when you became president in 2016.
Niidome At the time, the business was too diversified and theNiidome business performance was sluggish, so we first worked on restructuring the business and rebuilding the main job information media business. Originally, the media business is like a "trunk" of a tree, and only when the trunk is strong can the "branches" of peripheral businesses grow. However, at that time, the culture was becoming more focused on sales rather than focusing on the media business, and the core part of the company that should be cherished was shaken.
Therefore, in order to return to the starting point once again, we started by sharing the issues with all employees and changing their awareness. Every year, when we start making proposals to customers, we hold an internal briefing session for sales representatives from all over the country. I took the lead in directly conveying the message "Let's all move in this direction." Of course, things didn't change overnight, but I've been working steadily as the leader, and the results have begun to appear in numbers, and now we're finally at the stage where the flowers are beginning to bloom.
ーIn the corona crisis, recruitment and job hunting activities have changed significantly. What kind of hardships did you have there?
Niidome Both sales and operating income had recovered and just as we were going to do our best to move on to the next stage," the corona crisis hit us directly. February 2020, when the infection just started to spread, was an important time to choose companies as the ban on job hunting publicity was to be lifted in March. Job-hunting events are an important source of information for students, along with the media. We were unsure whether to hold job hunting events, but decided that we should not deprive students of valuable opportunities to hear the voices of companies directly, so we proceeded with extreme caution.
However, after that, the infection spread further, and from March onwards, we were forced to cancel events, and companies also had to shift briefings and interviews online. Through trial and error in an unprecedented situation, we managed to build a support system for corporate recruitment activities in a short period of time.
- What was the reason for the speedy response in such a short period of time?
Niidome I think the presence of the Business Solutions Division, which provides recruitment support for companies, was a big factor. Since they are usually in charge of recruitment selection work for companies and are working on problem solving, they have taken the initiative in collecting information and establishing concrete methods even during the corona crisis. Case studies were shared more and more within the company, and the fact that we were able to provide know-how to other divisions was a big factor. In the autumn of that year, I was able to take on the online operation of a joint university briefing session.
As a result, we were able to ride the wave of online recruiting activities and steadily increase orders. In addition to our swift response to the COVID-19 pandemic, we were able to overcome headwinds and improve our media business performance through teamwork based on collaboration between departments within the company.
In such a predicament, the most important thing is for top management to believe that they can absolutely overcome the crisis and stick to their convictions. Even when I was a division head, there were several management crises, but I managed to overcome them with my strong will and steady actions. This corona disaster has made me realize once again that if the top management doesn't give up, everyone will look forward and follow them.
Café space at DISCO Headquarters
Believed in the future of becoming the top in the industry and made a sincere proposal
Mr. Niidome and Mr. Taishi Mizutani (right), JAFCO investment manager
- In October 2022, you made a new start with a capital tie-up with JAFCO. Could you tell us how it happened?
Niidome The reason for considering a capital tie-up was the feeling that "the potential of this company has not yet been fully utilized." Our company has a history of about 50 years, and we have many strengths, such as the business solution business that has earned the trust of many major companies, and the Boston Career Forum, which boasts a top-class track record in hiring Japanese students syudying abroad. Despite this, unfortunately there are still gaps in the number of posting companies and sales compared to the top competitors in the employment information media business for new graduates, which we want to focus on the most.
However, we have won the first place in the competition after many years of effort. Our company once ranked top in the number of companies listed in the "Nikkei Employment Guide". As long as we don't give up, there should be a possibility that we, too, will be able to make it to the top through "Caritas Job Hunting."
There are two main challenges in aiming for the top. To strengthen IT services by increasing human resources for web development, marketing, etc. At the same time, make the business management structure more robust. When I consulted with my bank about these matters, I was advised that one of the options would be to form a capital tie-up with an investment fund.
- What impression did you have when you met JAFCO?
Niidome JAFCO was introduced to us by our advisor while we were considering several companies. Four people including Mr. Mizutani came to our first meeting, and I was surprised that they understood our company so much that we didn't think it was the first time.
Mizutani Of course, I knew about the existence of the company and service called DISCO. In addition, we have a lot of investment experience in the human resources and HR Tech fields, so we had some internal knowledge of the industry. On top of that, I learned more about the industry and the company, and had repeated discussions within the company. We first approached the Company by saying, "We are sorry if we are wrong, but this is how we think about the industry and the DISCO, and considering the growth of DISCO in the future, this is the kind of measures and investments you should be making. If there are no major differences in our thinking, we would be happy to work alongside your company based on this framework."
Niidome But it wasn't at all out of line with what we were thinking. I was surprised how you knew this well.
Mizutani When thinking about the content of the proposal, I was particularly conscious of what the company's core competence was and where DISCO's growth levers lie. For example, DISCO provides opportunities for external communication for recruiting new graduates and students, while covering a wide range of peripheral needs such as planning and practical support. I said that if we were to aim for growth while boosting entire organization, we need to refine the media itself and make the various investments necessary for that.
ーFrom the standpoint of an investment manager, what aspects of DISCO made you feel the potential?
Mizutani DISCO has been creating encounters between companies and human resources both domestically and globally for many years in the recruitment and education industries. There is something very excellent in dealing with analog aspects that has been cultivated in its long business history. DISCO excels in the politeness and meticulousness of each job, stable strength, and is highly evaluated by customers. In the case of a company that is strong in digital but weak in analog, there are many cases where it takes time to transform because it has to change the fundamental culture. Whereas DISCO, which excels in analog t, will significantly grow if digital aspects are strengthened. I thought it was quite possible to stand at the top of the industry.
The recruitment and education industries are becoming more segmented, and many startups are emerging, but there are only a few companies, including DISCO, that are in the middle of mass-market media. In Japan, where the birth rate is declining further, the opportunity to invest in a company that has the potential to transform the entire new graduate recruitment market and open up a new future is very valuable. We thought we would definitely invest in the Company in order to explore and create future work styles and contribute to the future of Japan.
- Please tell us what made you decide to choose JAFCO in the end.
Niidome The fact that all the conditions we were looking for were met and that our company was highly evaluated. Some companies did not agree with our desire to be the top of the industry, but JAFCO believed that we could reach the top, and sincerely proposed what we needed to do so. I met with several companies over the course of over a year, and the evaluations and ways of thinking about our company were completely different depending on the fund.
Mr. Mizutani and others spoke frankly from beginning to end, so I was able to speak frankly myself. It only took three months to sign a capital tie-up from our first meeting. There were some voices of concern within the company, but at the general meeting of employees, people from JAFCO talked directly about the details of the alliance and their thoughts on the potential of our company, and I feel that the understanding of the employees has progressed considerably.
Carrying out "management that believes in people"
ーPlease tell us what you would like to work on together with JAFCO in the future.
Niidome Our first goal is to be the top in NPS (customer loyalty). Every year, we ask a third-party organization to conduct a student survey. I want to achieve overwhelming results so that students will respond, "I was very satisfied with "Caritas Job Hunting'" and "I would definitely recommend it to my juniors." We believe that the accumulation of this will lead to an increase in the number of companies posting and the number of registrants.
For that reason, from next year, we plan to install a word-of-mouth function that has not been introduced by other media, and post stories of seniors' job hunting experiences. Various companies have been introduced by JAFCO, and we are in the process of strengthening web marketing, which is necessary for the site renewal.
In addition, we have started working on recruiting human resources, including CxO, and developing personnel systems. Mr. Mizutani and others are very quick to respond, so I feel that we can move with a sense of speed toward future growth.
ーAmidst the heavy responsibility of protecting and evolving a company with a long history, what is the source of your motivation?
Niidome It's been 35 years since I joined DISCO, and I believe in the potential of this company, and I know that all the employees are working hard. I myself have a sales background, so I know how happy it is when a customer says, "I'm glad I asked DISCO." That's why I want to maximize the potential of this company so that it can be properly evaluated by the public. Now is the time when it is easier for the company to come together as one, so I believe it is my mission to solidify the foundation for growth at this time and pass it on to the next generation of management.
ーLastly, please tell us about your most important aspirations as CEO.
Niidome I want to practice management that believes in people. In an era of little change, it would be nice to have a charismatic CEO. In today's rapid changes, it is definitely more successful to run a business by utilizing the wisdom and experience of 500 employees rather than relying on the ability of one person. How to collect the wisdom and experience of 500 people and make the best choice from them. How to bring everyone in one direction without blurring the axis once you make a choice. I believe that is the job of CEO.
Person in charge: Comment from Taishi Mizutani
The background to investment in DISCO can be broadly divided into two points. The first point is the 'social significance' of supporting the growth of various organizations through recruitment support for companies. The second point is "Possibility of transformation" into an IT mega-venture that combines the strength of analog aspects. I am convinced that DISCO will continue to play an important social role from the past to, present and onto the future in Japan, where globalization and a declining working population are seen. DISCO's meticulous support and solutions are highly rated by customers. On the other hand, there is plenty of room for improvement in terms of digital marketing. While leveraging JAFCO's know-how and network, I would like to work with DISCO executives and employees to transform DISCO into a growth company and rank among the top companies in the industry.
