Executive Summary
Population increase under 64 years old is the most important measure of "Hokkaido Mirai (future)." I propose differential strategy called "Hokkaido Midoru (= Middle + Midori, green in Japanese) Vision;" Aiming for a virtuous cycle of increasing middle-aged young population, economic recovery, salary increase, rising birth rate and environmental export from Hokkaido. Providing true global entrepreneurship environment consulted and managed by global professional CEOs/Country Managers are key to attract young people who want to move in under COVID-19 pandemic but not find any IT and venture jobs like Tokyo.
Hokkaido Mirai (future) Vision
There are two competitive strategy, defined by Michael Porter, taught at Harvard Business School. 1) Lower Price Strategy 2) Differentiation Strategy At MIT Sloan School of Management, Clayton Christensen, author of Innovators Dilemma, taught me that lower price strategy will not be sustainable under innovations, such as technical innovation or resource innovation. Thusly, companies or (local) governments should choose differentiation strategy to attract clients, customers, (future) residents, companies, and tourists. With a differentiating strategy, I propose that local governments aim to acquire a population under the age of 64 from the outside Hokkaido, especially from Greater Tokyo area. Even though young people in the metropolitan area are considering moving to rural areas due to the COVID-19 pandemic, there is only work (even digital) that local governments encourages the utilization and excavation of local industries and special products. In the current era of digitalization and remote work, it should be possible to provide the work here in Hokkaido that they are looking for in Tokyo, but the biggest issue is not providing it. Local governments only care how to use their local resources to sell, not understand young Tokyo professionals' demand side. Provide town specialties such as local vegetables, fruits or fishes, and tourism resources are not the real differentiation from the young Tokyo people's point of view. They are not attracted to move to the town and work from there. Conversely, the demand is Key Success Factor for local towns in Hokkaido. Existing industries, education, child-rearing, living, etc. should also be examined and reconstructed from the perspective of how to get young people to move from Tokyo, etc. To increase the population (ratio) under 64 years old and realize sustainable growth of Hokkaido.
Base Strategy to attract young people to move in, then aim global venture mind from local Hokkaido
(1) MIT / Harvard style venture management and entrepreneurship support. Venture companies create 30% of Boston's employment. Even if it is not possible to make the same scale in local town, it will be possible to acquire young people by successfully promoting it as a model case even if it is small. Aiming to introduce MIT/Boston model throughout Hokkaido in the future. (2) Utilize community-reactivating cooperator squad system (Chiiki-Okoshi Kyouryoku-Tai in Japanese) for the short term win which local governments in Hokkaido begin. Recruitment of domestic and foreign / global market venture entrepreneurs. Why don't you start a business by utilizing digitally from local Hokkaido while consulting on MIT / Harvard's management and entrepreneurial know-how? (3) We aim to utilize the roadside station (Michi no Eki in Japanese) cafe space not only as an exchange space for old people and babies in rural areas, but also as a free office space or co-working space for young entrepreneurs and local business successors. The location can be the old or new town hall, etc. (I would like you to think about the idea of the local government that introduced the convenience store in the city hall in a more productive way) (4) Utilizing the knowledge and personal connections of villa (current / future) residents, we will create businesses and form alliances with companies inside and outside Hokkaido and overseas. Aim for a town like Tobetsu-Town Sweden Hills where young families are willing to live in villa or resort areas in local towns where usually far from city center or stations and only senior people reside. (5) In addition to using the towns people as a mere reference opinion for planning, we will ask the excellent townspeople for comprehensive policy planning and strategy execution support by being appointed as special advisors and deputy mayors, and make use of outside voices. It is said that there are many complaints that the towns people are not involved in the policy administration or decisions, and by realizing a town administration that integrates the towns people, we will seek "reasonableness" and realize the influx of young people who are willing to build the future together. (6) Promotion of digital culture: Japan is lagging behind the world. Japanese politicians and aged people who still keep political and economical power for decisions, are looking down at Southeast Asia, and the sinking current Japan is seen in the same manner from Europe, the United States, India, China, etc. In a simple example, the public relations paper should be downloadable from the local government homepages. Even if the paper is distributed to people aged 65 and over (which can be confirmed by vaccination), households with only younger people will be encouraged to browse the Web and make digital routines. Most documents to submit opinions by people does not require printed paper and a seal (or electric signature service is enough). If local governments want the participation of general towns people, only two public recruitment committee members out of 20 official members are too few, and if you are really thinking about promoting digitalization, you can also accept participation through ZOOM video system, so that young people such as high school students and mothers/fathers who are raising children can also participate. You can actively encourage young generations to participate in town administration as a committee member. Lastly, only 9% of top executives retain the ability to transition to global digital, researched by MIT Sloan School of Management, so professional global digital executives should be appointed from outside.
Encourage global entrepreneurship is KSF to increase population of young generation and to develop Japan digital economy.
IMD Country Ranking shows how Japan rapidly shrink and even laps behind. Out of 64 countries, Japan stands 64th for International Experience, 64th for English skills, 62nd for Management skills, 55th for Entrepreneurship skills, 47th for Digital Resources. There are very few global digital managers who can teach young people the consciousness and environment to start a business from the road to Japan and the world, and it may be a detonator that attracts young people who want to work in the same way as in Tokyo and the metropolitan area. Current Japanese venture entrepreneurs are looking only at Galapagos Japan market. Entrepreneurs in other countries start businesses with a view to the global market from the beginning. Therefore, the software, apps and web services in your PC and smartphone have already been completely defeated by foreign products. Finland, which has the same population as Hokkaido, has achieved about 1.7 times higher GDP, labor productivity, and average salary, and global IT venture business are being born one after another. On the other hand, nothing in Hokkaido, even no presence in and from Japan. We must create true global entrepreneurship culture developed by successful entrepreneurs and professional CEOs who can take true leadership in global market, not the people who are good at promoting themselves among Japanese media who usually do not have presence in US or Europe, as I saw lots of professionals and bureaucrats who has presence in domestic organization but nothing at Harvard or MIT. Ideas and innovations are born at intersections. Civil servants and related organizations will be more familiar with the existing town administration. However, in the reality of population decline and the wave of globalization due to the digital revolution, it is important for different human resources who can draw a global growth strategy to create a culture that is positively welcomed by the town administration. Without that, it is not possible to welcome different young people from the metropolitan area to settle down, let alone increase the population under the age of 64 and realize the sustainable growth and future of the town. It is the heavy responsibility of the town administration before passing the Point of No Return that Hokkaido and its local towns build an open town administration by demonstrating leadership and appealing and promoting it to young people in the metropolitan area to achieve sustainable growth.
Posted on 2022/Jan/13. Updated on 2022/Jan/19, 26, 2/16