Creating a Society that Looks Forward to Tomorrow’s Work:
The Path to 10,000 Corporate Clients
In Part 1 and Part 2, we brought you the story of President Nakashima’s origins as an entrepreneur, the rapid growth of “Mr. All-in-One Recruiting Manager”, and innovating the recruitment process with the use of AI. This third and final part is about how he overcame the trial of organizational management that started in his company’s founding days, his experience with humanoids at CES, the background of HR Cloud’s relationship with D-POPS GROUP, and his five year vision of connecting with a total of 10,000 corporate clients.
◆The “Biggest Crisis” in the First 5 Years Since Founding: Failure of Organizational Management
Sugihara:
As you enter your 13th year of operations, what was the biggest crisis you encountered in these past 12 years?
Nakashima:
Organizational management was a big wall. I started the company knowing almost nothing about management. Thankfully, there were many people who said, “I’ll work together with you” and joined the company, but then after they joined, I couldn’t manage them well at all. I was totally focused on external relations and paid no attention to my employees.
Because of that, for the first five years, people kept joining and then quitting, which was heart-breaking. It was totally my fault, though.
Sugihara:
That was a bigger crisis than when you were 200 million yen in the red, wasn’t it?
Nakashima:
Yes. When it came to finances, we were able to just barely scrape by as long as I did sales and earned money, because we didn’t have so many employees. The people problem was more mentally and emotionally painful because the same thing kept happening again and again.
The thing that caused the greatest change was shifting to culture-based hiring and changing our employee evaluation system to visualize how much they can grow if they work hard. These two things. The situation was beginning to settle down from the 2018 hiring season. My failure was not being able to transition from an individual player to a business manager.
Sugihara:
Culture fit and designing an evaluation system really are important. The 10 core values and credo displayed at the entrance to your office are all very easy to relate to. Were they made around that time?
Nakashima:
Yes, but a lot of them have changed since then. We set a management theme for the company every year. Last year’s theme was “Think Positively About the Future”, and the year before that was “One Team”. Many of those yearly themes are added to our credo.

◆100+ Employees: Transmitting Corporate Culture and Training the Next Generation of Executives
Sugihara:
I heard that 18 employees joined you this April, bringing the total number of your employees to over 100. When companies reach this scale, I think problems will start to appear with passing on corporate culture and maintaining a high speed. What are you doing to prevent those?
Nakashima:
Just as we were approaching 100 employees, we changed our management hierarchy from three levels to four levels. What I’m doing now is to hold training sessions every month to bring up our next generation of executives. I think that if the culture does not permeate well, the company mindset will eventually slow down. Therefore, I am training about 15 prospective managers on my corporate management philosophies.
Sugihara:
Do all the employees have opportunities to gather together?
Nakashima:
We have an award ceremony every month. The flow is a small award ceremony once a month, a big award ceremony once a quarter, and an even bigger award ceremony for the whole year. We hold the monthly award ceremony in this office, and then have a social gathering together afterwards.
Sugihara:
You reward employees with various types of jobs, right? Not just sales results?
Nakashima:
Yes, everyone has a chance to win an award.

◆Corporate Values of Honesty, Respect, and Challenge
Sugihara:
Your website lists ‘honesty’, ‘respect’, and ‘challenge’ as your corporate values. This is extremely similar to the D-POPS GROUP’s value of “Grow and learn together through sincerity, humility, and gratitude.” Please let us know your thoughts or impressions regarding this similarity.
Nakashima:
Since we have the vision of “creating a society that looks forward to tomorrow’s work,” we want to be a company that places our highest priority on achieving that vision. I want our employees to face their work seriously and enjoy it, and the things that are important for that are honesty, respect, and challenge.
After all, if people don’t personally grow through their work, they won’t enjoy it. And in order to grow, they need honesty and humility, and they have to challenge themselves.
Also, it is important from the company side to provide a place to take on challenges. Also, when it comes to respect, our company spans many areas like engineering, marketing, sales, customer success, and administration, which means horizontal collaboration is very important. So, we place great importance on giving each other proper respect. We decided on these three values with the sense that we are all working as a team.
Sugihara:
Listening to you speak made me feel that you are full of honesty and sincerity, and I think that value is communicated to your employees as well.
Nakashima:
Over the past three years, about 30 employees have joined as new graduates, and only one of them has quit.
Sugihara:
That is wonderful! Is there anything unique about your hiring criteria?
Nakashima:
I wouldn’t really call it a hiring criterion, but anyway, the biggest thing is to be teachable and open-minded. No matter how high their skills are and how well they can work, being teachable is the most important thing.
◆The Future of Humanoids Experienced at CES
Sugihara:
By the way, I heard that you visited CES at the beginning of the year as an observer. What global trends impressed you or caught your attention?
Nakashima:
Definitely the humanoids presented by Chinese companies. I felt firsthand that when AI is combined on top of robots, the world will change. There were also dog-shaped robots, and they could run amazingly fast. Since they are equipped with sensors and AI, it was too easy to picture them holding guns and being used for war. It is scary to imagine, but I figured this really is what the future might look like.
In a broader sense, I could also see humanoids coming into play within the human resources industry. Many of our clients hire blue-collar workers, so in the current labor shortage, it seems like a business that proposes “What about using humanoids instead?” is not out of the question, so I plan to look more into that possibility.
Sugihara:
I heard you were accompanying D-POPS GROUP’s Chairman Semmoto and President Goto on that trip to CES. I also heard that you played golf with Chairman Semmoto after returning to Japan. What kind of impressions did you have through your interactions with these two veteran business managers?
Nakashima:
Chairman Semmoto’s words, “Anyway, do something unimaginably huge that benefits society,” really resonated inside me. Also, every time we meet, he asks, “How many years since you founded? What are your sales? How many employees?” and when I answer, he says, “No good at all, huh.” Every time that happens, I feel frustrated, but it always energizes me, too. On the other hand, there are times when he compliments me, saying, “That’s great!” and each time, I feel like working hard again.

◆The Reason for Receiving Investment from D-POPS GROUP
Sugihara:
For HR Cloud, which is looking to go public in the future, I guess there were many companies interested in investing. Why is it you chose to receive D-POPS GROUP’s investment, and is there anything that makes you particularly glad you received it?
Nakashima:
There are many. First, the reason I asked him was that President Goto had been supporting me since before I started my company. At the time of founding, my first business was a recruitment agency. President Goto asked me, “How much do you charge to find one person?” When I answered, “It is 800,000 yen,” he replied, “Well then, I’ll ask you to find us five people.” Things at that point were difficult, and money wasn’t circulating at all, so receiving 4 million yen really helped me run the business.
And even now, I receive business management advice from President Goto one or two times a year. The advice I receive at those times always deeply touches my heart, and I have a huge debt of gratitude for how many times he helped me. I asked President Goto to invest in my company out of a desire to return that favor.
Sugihara:
So, it was an investment to return a favor, just as I hear from President Goto sometimes.
Nakashima:
That’s exactly what it was. I asked him because I wanted to pay him back for all he’s given me. We have not been able to go public yet, so I have not returned the favor completely, but I think I can if HR Cloud keeps growing well and goes public someday.
◆Identifying with the Venture Ecosystem: “I Want to Make Japan Stronger”
Sugihara:
D-POPS GROUP’s aim is “realizing a Venture Ecosystem”. Do you identify with any part of that?
Nakashima:
At the very basis of who I am is a desire to “make Japan stronger”. The reason is because I often heard stories about the war from my grandfather, and my grandfather’s younger brother was in a special attack unit, and I had the chance to read his diary that he kept from that time. That impression has stayed strong in my memory, so I definitely want to make Japan stronger.
Because I want to make Japan stronger—and this is our thinking behind creating people who look forward to their jobs—that probably connects to this. In the end, I think startups will change Japan, so our Venture Ecosystem, which provides foundational support for these efforts, is something I totally believe in as a means of strengthening Japan.
Sugihara:
Chairman Semmoto often says this, too, but it is startups that have made Japan big up until now, isn’t it? It is really true that making startups strong and supporting them will certainly lead to making Japan stronger.
◆5-Year Vision: “10,000 Companies” and “Utilization of Big Data”
Sugihara:
Could you tell us about any new features or services you are preparing to accelerate growth further in the future? Where do you aim to be in 5 years?
Nakashima:
In five years, I want the number of companies using our system to exceed 10,000, and I want to develop a business that utilizes the big data we get from those 10,000 corporate clients. Because our recruitment platform is being used by 1,800 companies, a considerable amount of data is gathering, and I always get excited about developing an AI business which can put that data to even better use.
I think we’re still lacking in the area of human resources necessary for us to get there, so I want to train our employees more thoroughly and create a company with an organizational culture and flexibility that are both strong.
Sugihara:
So then, your move to this office here in Kioicho last October was a step towards that vision, wasn’t it?
Nakashima:
The deciding factor for that move was our intention to increase loyalty, both inside and outside the company. Loyalty with customers, and loyalty with our own members. We hold social gatherings and user meetings here, and just last Friday, we invited a sushi chef and held a welcome party for our newly-joined employees.
◆A Message to Our Readers
Sugihara:
Finally, could you give a message to our readers?
Nakashima:
It is true for my management life as well, but I think I really could not do it by the power of one person alone. I have only been able to continue running this company until now thanks to the support of many people.
We are still a small company, but we have been blessed with various close partners, so I think it is important to rely on what they have to offer, and to form more connections like those. And I think the Venture Ecosystem plays a part in that. I think it’ll be easier to grow if we can make good use of the opportunities we have there.
Interview conducted by D-POPS GROUP’s advisor Genta Sugihara.
HR Cloud Co., Ltd.
Representative: President and CEO Yuki Nakashima
Address: 7F Kioicho Park Bldg., 3-6 Kioicho, Chiyoda, Tokyo
Established: April 2014
Website: https://hr-cloud.co.jp/
