Joining the Group and Getting Appointed as Leaders:
One Year of Facing Challenges Head-On
D-POPS GROUP has 23 group companies that we call partners (at the time of publication).
For this article, we interviewed Kazuya Taniguchi, CEO of A&K.com Co., Ltd., and Yasuyuki Kubota, the Managing Director of A&K.com Co., Ltd., which joined D-POPS GROUP in 2023.
◆The Path to Joining D-POPS GROUP and Assuming Leadership
Sugihara:
Today we’re interviewing President Taniguchi and Managing Director Kubota of A&K.com Co., Ltd. Thank you for your time. A&K.com became part of D-POPS GROUP in December 2023, right? Originally, the founder was still with the company, but after joining the group, the leadership baton was passed to the two of you. Could you tell us about that journey?
Taniguchi:
I had heard that they were considering an M&A. Actually, our company had been in talks with another M&A deal a year earlier, but it fell through. After that, I wasn’t really aware that similar talks were happening again, until around September 2023, when the M&A discussions became more concrete. One of the candidate companies we were asked to meet with was D-POPS GROUP. So, Mr. Kubota and I came to the headquarters here at Shibuya Hikarie and met with President Goto. But at the time, we just saw D-POPS GROUP as one of our many options. Then, around November, we were told, “The M&A deal with D-POPS GROUP has been decided.” To be honest, we were shocked.
Right after that, the founder said he would be stepping down. We asked, “What about the future management of the company?”
In response, he said, “I’d like you, Mr. Taniguchi, to be CEO and Mr. Kubota to be managing director to lead the company going forward.”
We were surprised, but the thought of saying something like, “In that case, we’ll quit, too” never crossed our minds. All we said was, “We’ll do it.” However, even though we agreed to become CEO and managing director, we had absolutely no experience running a company, so the period after the transition was a bit of a challenge.
Sugihara:
That must have been a huge shock. Before, you were both executives—the heads of the sales and administrative departments. You were essentially running the day-to-day operations. So after it was decided in December that you would become CEO and managing director, what kinds of changes did you experience in the following months?
Taniguchi:
The first thing we tackled was confirming the financial figures. Before that, we had a grasp of the gross profit, but only the founder was aware of the operating profit. So, we had him disclose everything, including information we had never seen before, and we meticulously went through all of it. We also worked with the founder to understand the bank loans—what they were for and when they had to be repaid. Still, there were parts of the company’s financial situation that we couldn’t figure out, so we’ve had to consult with our tax accountant on an as-needed basis to this day.
Sugihara:
What about you, Mr. Kubota? How did you feel about the M&A and taking on leadership?
Kubota:
Well, as President Taniguchi said, seeing the financial side of the company for the first time was the most illuminating part, but it took time for me to fully understand the big picture. Also, right after the contract was finalized, we were told that we needed to give a speech at D-POPS GROUP’s annual all-hands event on December 6, 2023. We had just signed the contract and were in the middle of a confusing transition, so to be asked to give a greeting and company introduction as new executives was a bit overwhelming, ha ha.
◆Impression of D-POPS GROUP
Sugihara:
It’s been about ten months since you joined the group. What’s your impression of D-POPS GROUP now that you’re a part of it?
Taniguchi:
When we first joined, I honestly wasn’t sure how to proceed. There are many group companies, and I was unsure how to communicate with all the different CEOs and other members. But now, I’ve had the chance to communicate with many of the CEOs and other people in the group, and we’ve built strong relationships. The next step is to figure out how to leverage and connect these relationships within the Venture Ecosystem. It’s also been great to be stimulated by the younger members. Our younger team members also feel more motivated because of the M&A. What about you, Mr. Kubota?
Kubota:
I realized that I had a narrow perspective since I had been doing a lot of things my own way. Now, talking with the leaders and members of various companies and hearing all the interesting topics and information they share has really broadened my horizons. I’ve also come to the realization that there are things we need to improve professionally, rather than just doing them our own way.
Sugihara:
I hear you have regular meetings with other group companies, such as those in the human resources field. Since you’re more senior, is there anything you’ve been able to teach them?
Kubota:
Sure. Regarding hiring, we’ve always used advertising media, whereas I heard that the other group companies tend to use recruiting agencies. So, we’ve shared our methods and the platforms we use for advertising-based recruiting. Some of the other group companies have even decided to boost their advertising efforts because of what we shared.
Sugihara:
It’s great that you can learn from each other. I hope collaborations like these will continue to increase.
Taniguchi:
I agree. I hope we can use the flows within our Venture Ecosystem to think about how we can share and connect talent within the group, for example. I also hope we can collaborate on hiring as a whole group.
◆A&K.com’s Business Overview
Sugihara:
Thank you. Next, could you give us an overview of A&K.com’s business?
Taniguchi:
We are a human resources company that operates on four main pillars: temporary employee placement, staffing services, business outsourcing, and sales promotion events. Our clients include major electronics manufacturers, electronics retailers, and telecommunication companies. We originally started by mainly providing staff to sell consumer electronics at mass-market retailers, and our business has expanded from there to what it is today.
Sugihara:
Now that you’ve taken over the company and are running it yourselves, what things have you changed or kept the same in the last ten months?
Taniguchi:
I believe that, fundamentally, nothing has changed. I’m doing the same things as before, but as I mentioned earlier, now that I’m a business leader, I’ve started to look more closely at the company’s operations and management, including the financials. I’ve come to think more deeply about what needs to be cut and how. Right now, I’m at the stage where I’m focused on the cash flow and thinking about what we need to do to make an investment.
Sugihara:
What about you, Mr. Kubota?
Kubota:
I’d say the same—fundamentally, nothing has changed. On the contrary, you could almost say I’m making a conscious effort not to change. I’m still hands-on with the practical work, keeping a close eye on everything, and talking with employees face-to-face. I’m trying to make sure that my attitude doesn’t change just because I’m a business leader now.
I have changed one thing, which is that I no longer come in first thing in the morning. I’m being more conscious of things like trying not to put much pressure on our employees, so I thought it was better to be a bit more flexible with my time.
Sugihara:
How many core members are there at A&K.com?
Kubota:
There are 40.
Sugihara:
When you decided to move forward as the new leaders, there was a possibility that some people would leave. How many of those 40 did you believe would stay with you through the changes?
Kubota:
Every single one of them.
Taniguchi:
This “40 people” refers to our regular full-time employees, so our commitment to working together with them hasn’t changed. Our headquarters has just under 20 people, and our first goal is to boost their motivation. We reorganized the team starting this October, so things are settling down now.
Sugihara:
Things often change after an M&A. The new system doesn’t start at 100% from the very next month, and it seems like it took your company about ten months to get settled again. I look forward to seeing what you’ll do next.
◆Trends in the Temporary Staffing Industry
Sugihara:
Are there any trends in the worlds of temporary employee placement, staffing services, business outsourcing, or sales promotion events? Is the HR industry itself facing headwinds or tailwinds?
Taniguchi:
More of a headwind, I’d say. As you know, there’s currently a talent shortage in Japan. There’s plenty of demand, but our supply just can’t keep up. In terms of recruiting, there’s a strong sense that everyone is competing for the best talent, and a lot of companies are relying on referrals. It feels quite challenging. There are a lot of jobs (demand), but not enough talent (supply).
Sugihara:
I wanted to ask about that, too. There are plenty of jobs because there’s a need for them. When I think about event hosting, you can buy anything online these days, but I don’t believe the experience of buying something in person while receiving an explanation from a staff member will ever completely disappear. So, from that perspective, are manufacturers’ requests for staff continuing?
Taniguchi:
Yes, they are. I believe the desire to make in-person purchases hasn’t changed.
Kubota:
Also, electronics retailers are changing a lot. They are shifting to a lifestyle-focused approach and even co-opening stores with restaurants and apparel brands. In that sense, I feel that places where people gather are becoming more specialized and centralized. The electronics and telecommunications industries are relatively stable, and based on the information from our clients, I believe demand will continue.
Sugihara:
You had a tough time during the pandemic, didn’t you?
Taniguchi:
Not necessarily. There were things like temporary store closures, but with the support and measures in place during the pandemic, we were able to get through it. At that time, electronics retailers were considered to handle all-around lifelines, so their operations had to continue.
Sugihara:
Where have you felt a headwind in A&K.com’s recruiting efforts?
Kubota:
Our staff ranges from veterans to mid-career and young employees. So in the electronics sector, we have many people in their 40s and 50s and even those over 60. Products and services in both the telecom and electronics industries are becoming more complex. And generally, sales and marketing jobs are seen as a bit less…appealing to job-seekers these days.
Taniguchi:
On the other hand, if we can’t gather enough people for temporary staffing, we have to deal with the challenge of generating revenue from other business areas. If we choose to focus on outsourcing instead of temporary staffing, we usually end up relying on various other partner companies, who then provide us with the necessary staff to generate sales. While this brings in revenue, our profit margins get stretched thin, so we have to figure out how to return to our original business model at some point.
Kubota:
Another area is utilizing foreign workers. They often have vast networks. If we can provide them support with communication and employment, I bet we can create a system where our talent increases through referrals.
Sugihara:
What methods are you devising now to tackle these difficulties in recruiting?
Kubota:
We’re focusing on three things. First, we’re building our own recruiting website to reduce our reliance on expensive advertising platforms. Second, we’re strengthening our system for referral recruitment, especially for foreign nationals, as I mentioned earlier. And finally, we’re focusing on recruiting new graduates. We have seven new graduates scheduled to join us in April 2025. We have a system where they start in the field to gain industry and practical experience, which then strengthens our on-site teams before they move to a position at headquarters.
◆About the Generational Gap
Sugihara:
This is a topic we just touched on, but in D-POPS GROUP, which has many younger members, do you ever feel a generation gap? If so, what do you do to address it?
Taniguchi:
Yeah, of course there’s a generational gap, but I make sure to pay attention to how I’m providing guidance. I’ve learned from experience that the old ways of teaching and giving feedback just don’t work anymore, ha ha. So, I’m constantly thinking about how to approach that. I also know that saying nothing at all isn’t good, either, so a big part of my job is navigating the balance between giving people too much and not enough guidance.
Kubota:
In that sense, I try to be perceptive and figure out what each person wants or needs. For example, I try to figure out if they’re the type who does want strict guidance or if they’re the type who would prefer a softer approach. Most of our employees prefer the latter, but some of our younger members want to rise quickly through the ranks, so I always try to make sure I don’t use the wrong method of communication.
Sugihara:
And as the roles of CEO and managing director were so suddenly dropped in your laps, even though there will be times when either of you makes a mistake, I’m sure the team members must be inspired just by seeing the two of you taking on the challenge.
Taniguchi:
Well, I’d be grateful if they felt that way. But honestly, I’ve sometimes wondered if it was a complicated situation for them. For the employees, their company suddenly changed due to an M&A, and the founder and CEO stepped down. I have to think that they were caught off-guard just as we were, but in a different way. When we talked to the team members later, it was clear that many of them felt that way.
Sugihara:
Let me ask a different question. D-POPS GROUP is filled with an entrepreneurial spirit, and many young members are interested in starting up their own companies. Have you noticed any changes in your own employees after joining a community with that kind of environment?
Kubota:
That’s true. For example, in our recruiting meetings, I’ve felt a sense of competition—a feeling of wanting to be the best. It’s also probably due in part to D-POPS GROUP’s “free agent” system, which allows members to be temporarily transferred to other companies within the group. We’ve also seen some people discover new things, such as the proactive individuals who began participating in the employee stock ownership program.
◆On Realizing a “Venture Ecosystem”
Sugihara:
I see. It’s been a year full of a lot of changes. Now for an important question: What are your initial feelings about realizing the “Venture Ecosystem” that D-POPS GROUP is striving for?
Taniguchi:
I think it’s a great idea. As for what we can do to contribute, since it’s an Ecosystem within the group, we can provide our personnel to other group companies. As a related example, I heard that D-POPS has a system for training their mobile phone shop staff, so we could send our new recruits and current employees to participate in their training, and vice versa. I think that’s one good aspect of being part of the Ecosystem.
Another aspect would be in the area of digital transformation. Our company isn’t very strong in DX, so I’d like to consult with other group companies about where and how we can get help with that.
Kubota:
From my perspective, starting a business always comes with a risk of failure, so I feel like there’s an unwritten rule that members of a Venture Ecosystem should come to each other’s aid when there’s a problem or things aren’t going well. It’s not always going to be easy, so it’s good to be able to support each other during difficult times.
Sugihara:
That's a very encouraging comment. So, what is A&K.com’s ideal vision for 10 years from now?
Taniguchi:
We definitely need to focus on developing our talent. I want to increase the number of new core members, so that’s one priority. Honestly, I don’t know what the electronics industry will look like in 10 years. The telecommunications industry will likely remain stable, but we can’t see what’s coming. We’ve always relied on these two pillars, so we’ve always faced the perpetual issue that they may not be enough by themselves. I don’t think we can grow any more without adding one or two more big pillars. So, I hope that in 10 years, we’ll have more pillars and have increased our sales beyond the 3-billion-yen mark we’re aiming for over the next three years.
Sugihara:
That’s a fantastic goal. What are the challenges you face in achieving it?
Taniguchi:
I’d have to say our main challenges are in our ability to recruit and our sales capabilities, as well as the talent development I just mentioned—how we’re going to tackle that. Also, in the midst of this current age of diversity, I want to make A&K.com a company that people feel a sense of loyalty toward. It’s great that employees can be transferred within the group, but I hope we can increase the number of members who feel a strong connection to A&K.com.
◆Message to Readers Visiting Our Website
Sugihara:
Finally, could you share a message for our online readers?
Taniguchi:
I’d like to take this opportunity to address the members of A&K.com. I am currently 54 years old, and I am still giving it my all. I’m doing my best not to lose to our younger members, so if you see this and feel inspired to try even harder, I’d be very grateful.
Kubota:
I agree. Now that we’ve become part of D-POPS GROUP, I hope our members see this as a chance to take on challenges and seize new opportunities. I also want to mention that everyone in D-POPS GROUP is so bright and cheerful. I’m sure they face many hardships, but they always have a positive attitude, and I never hear them say anything bad about anyone. They always greet everyone with a smile, and I really want to learn from that. I love that kind of atmosphere, and I want A&K.com to become like that, too.
Interview conducted by D-POPS GROUP’s advisor Genta Sugihara.
◆Afterword: Group Company CEOs’ Retreat
The other day, a retreat was held for the CEOs of D-POPS GROUP’s group companies, organized by D-POPS GROUP’s President and CEO Kazuhiro Goto. The goal of the retreat, which took place in a beautiful location with an ocean view, was to enable the participants to clearly define their business strategies and to achieve personal growth as leaders.
President Taniguchi’s Insights: (January 20, 2025)
Thank you very much for the opportunity to participate in the group company CEOs’ retreat. I am extremely grateful that I could have such a valuable and stimulating learning experience in my role as a business leader for the first time after the M&A. I will work hard every day to ensure that I don’t just let this knowledge sit there but instead put it into action and make things happen.
The environment was also amazing, with perfect weather, a beautiful location, great scenery, delicious food, and fresh air…everything about it was deeply moving, from start to finish. Most of all, after being able to absorb all of that positive energy and then take it home with me, I plan to use that energy without letting it dwindle and keep strengthening it.
At the retreat, I learned a lot of stimulating things, especially about the importance of a leader’s personal growth, how to clearly define a business strategy, the significance of setting the “three pillars” to achieve it, and how to attract good fortune. I intend to organize each of these lessons in my own mind and make every effort to put them into practice. I will put all of my effort into helping A&K.com to accelerate its rotation as one gear in our machine, in order to expand the circle of our group’s Ecosystem.
I also had the chance to hear the different ways of thinking, challenges, and concerns of the other group CEOs. The discussions we had and the numerous pieces of advice from all the advisors were great learning opportunities for the future. It was an amazing retreat. Thank you very much!
A&K.com Co., Ltd.
Company President and CEO: Kazuya Taniguchi
Address: 3F/4F Shinjuku Hikari Bldg., 5-16-11 Shinjuku, Shinjuku-ku, Tokyo
Established: January 2001
Website: https://www.a-kcom.co.jp/
