Global Management Board Meeting

Since April, YEF President Harry Hauptmeijer, YCA President David Johnson, and YEA President Tony Lee have been coming to Japan each month to attend the Management Board meeting. As the markets outside Japan are responsible for more than half of our business, these executives play a crucial role in our global operations. They are now able to give their opinions directly at these meeting, allowing Yokogawa to adapt to changing global market conditions and improve its global competitiveness. In this issue of the Groupway, we ask for their impressions of these meeting and the future of the Yokogawa Group.

Tony Lee, YEA President

I am very honored to be one of the three first non-Japanese attendees of the Yokogawa Management Board Meeting at YHQ.

As a member of the Yokogawa management team, I see this as an important step in globalizing Yokogawa’s business operations. Attending these meetings provides the heads of non-Japan operations a better overview and understanding of Yokogawa’s entire business. Also, as a part of the process of globalization, I appreciate that management is considering the opinions and feedback of important subsidiaries outside Japan. I also think this is a giant step toward the goal of a “One Global YOKOGAWA”. Going global requires openness to different cultures, ways of doing things, processes, and structures. Although it is a long process, I think this move to globalizing management demonstrated the Yokogawa leadership’s vision and commitment to taking the company to even greater heights.

As a corporation, Yokogawa embarked on the journey of globalization many years ago, and today we are seeing the good results of this effort. Yokogawa’s operations outside Japan now account for more than 50% of IA sales revenue. As the Japan market matures and saturates, other markets shall become the engine of growth, propelling the Yokogawa Group’s business forward.

Surviving this economic downturn and going forward from a more internationalized operation by being more competitive and more effective in expanding into a new businesses and markets.

Harry Hauptmeijer, YEF President

Recently, Yokogawa Europe opened its new headquarters and once more I realized the importance of Yokogawa’s global and international business environment. We could only realize this headquarters with the good perspective that comes within the context of One Global YOKOGAWA, and this is with gratitude to my colleagues all over the world. It is the exponent and immediate proof that globalization is a must that our customers require. I am very pleased that this customer wish extends to the regional participation in the monthly Management Board meeting, or KEIEI KAIGI. It is a clear sign that Yokogawa appreciated and encourages global thinking and acting. I find it motivating and stimulating, and by the way: the English is perfect!

Naturally the participation in the KEIEI KAIGI implies a view on the future of Yokogawa. Therefore, I would like to quote our major customers Shell and ExxonMobil. Recently NAM celebrated its 50th anniversary of the finding of gas in the Netherlands, today the world’s number five gas producer. NAM’s two shareholders Shell and ExxonMobil delivered their vision on the future. Both confirmed that fossil fuels have a long future. Shell’s CEO Jeroen van der Veer added that Shell’s mission is to deliver affordable energy, and he contributed that renewable energy is still strongly subsided. Therefore Shell has decided to concentrate its renewable energy investments on the development of technologies to start mass production once it is basically affordable for the consumer. ExxonMobil’s CEO Rex Tillerson explained clearly his three pillars discipline, and teamwork.

I fully support the essence of our major customers’ messages and how Yokogawa should develop its future: with prudence, with high quality technology as our core contribution through teamwork to secure sustainability and long-term customer support.

David Johnson, YCA President

I am truly honed to be a member of such an important group. I understand this action (allowing non-Japanese nationals to be part of the Management Board meeting) is a Yokogawa first. The decision to diversity the Management Board meeting signals the reinforced commitment of YHQ’s top management continue with and accelerate the globalization of Yokogawa Electric. I view this as another positive step in the evolution of our company.

The future of the Yokogawa Group is very bright. Citing the specific example of the IA division, we have achieved great things; we have established ourselves as one of the top 3 industrial automation groups in the world. We have great talent and great products/solutions with a strong desire to achieve our targets, goals, and objectives. A key moving forward will be out ability to put strategic action plans alone is not enough to get to #1. We need to strategically look at opportunities more holistically and from the user’s perspective to assure the products and solutions we create have universal acceptance and are applicable to an industry, not just a particular customer. This will dramatically improve the efficiency of our R&D expenditures and result in better ROI with broader ranging solutions.

Last and certainl1y not least, we need to feel comfortable with our success. We have worked hard and have earned the right to be a world leader. Let’s stand confident and proud, “as one Yokogawa”. There are no limits to what we can and will achieve together. The key is truly believing in ourselves and our destiny. If we can be flexible enough to change strategies when required and overcome obstacles created by our competitors, we can and will control our own destiny!