Mr. Masahiro Sakane

Executive Advisor to Komatsu Ltd., and former President of Komatsu Ltd. Japan

Title: TQM & ESG are the foundation and ICT is the enabler for creating customer value and thereby maximizing corporate value.

Abstract

Komatsu Ltd. is a 100-year-old global company with annual revenue of 20 billion USD occupying No. 2 position by revenue in construction and mining equipment. Komatsu believes the role of the Leadership is to create customer value from limited corporate resources to achieve its goal of maximizing corporate value. This is realized on the foundation of ESG (Environment, Social, Governance) and TQM (Total Quality Management). This is called the Komatsu Way and followed in all their companies around the world. The business model is focused on DANTOTSU (Best of the Best) production, Dantotsu service and Dantotsu solutions for enhancing customer value. To achieve this goal Komatsu started using KOMTRAX (Komatsu Tracking System) from 1998 with effective application of Internet and Communication Technology (ICT) and IoT years before the term Industry 4.0 was coined. KOMTRAX is now rechristened as Komatsu Wireless Monitoring System and effectively used for offering ICT Solutions leading to Smart Construction as the ultimate in offering customer value.

Biography

Mr. Sakane is one of the most impactful Japanese business leaders over the last 2 decades. In 2009 Harvard Business Review ranked Mr. Sakane as No. 17 amongst top 100 CEOs of the world and number 1 from Japan. After becoming the President of Komatsu Ltd. in 2001 he guided the company to achieve a V shaped recovery by evolving company specific approach of TQM as ‘The Komatsu Way.”

Under his leadership Komatsu pioneered the use of ICT & IOT in business organizations in 1998 with the introduction of KOMTRAX (Komatsu Tracking System) on its equipment, well before the term Industry 4.0 was coined. In 2001 Mr. Sakane decided to equip KOMTRAX system as standard on all products as a means of improving customer value.

While running a large global company Mr. Sakane found time to play an active leadership role as Chairman of Japanese Society for Quality Control (JSQC) from 2011-2012 and as Chairman of Union of Japanese Scientists and Engineers (JUSE) from 2012 to 2019. Mr. Sakane has influenced many business leaders from Japan to come together to discuss, develop and implement TQM that is suitable for the rapidly changing world with focus on creating customer value and social value for creating a sustainable society. He has given over 530 lectures on TQM around the world.

Mr. Sakane not only aimed at strengthening product competitiveness through TQM but also practiced TQM to strengthen its corporate structure as its foundation.

Contribution to the Government and the society. 2010 Vice Chairman, Japan Federation of Economic Organizations (JFEO)

Mr. Sakane served as Vice Chairman of Keidanren (Japan Business Federation, JBF) from 2010 to 2019, and played important roles of representing committees of “Earthquake Reconstruction”, “Policy Verification”, “Environmental Safety”, “International Cooperation”, “Small Business Policy”. In particular, the Policy Verification Committee and the Earthquake Recovery Special Committee played very important tasks as key for JBF’s policy and support of Japan’s recovery. Mr. Sakane has played important roles as an adviser to the Government of Japan to the application of TQM approach to its Policy Making Process.

Mr. Sakane took office as a council member of Industry Competitiveness Committee, Japan Economic Revitalization Head, Cabinet Office (Chaired by Prime Minister Abe, consisting of Deputy Prime Minister, Minister for Economic Revitalization and seven other Ministers of State and 10 private experts) established in 2013, nominated by the Prime Minister only from Vice Chair of JBF. Prime Minister Abe attended every time and continued intensive discussion, and in June of the same year, the Cabinet adopted the “Japan reconstruction strategy – JAPAN is BACK”. During this time, Mr. Sakane actively stated his opinions and contributed greatly to the main direction of the reconstruction strategy.

Co-Chair, Government-Private Council for the 5th Africa Development Congress, Ministry of Foreign Affairs for development of industries that contribute to the sustainable growth of Africa.

2014 “Grand Cordon of the Order of the Rising Sun”, Decorated by the Emperor. In Japan ‘s decorating system, this is the highest level of decorations awarded only a few distinguished persons in a year. He was awarded to the great achievements for many years in the fields of economics, politics, and society. Very rare for a person from business community.

More specific details of Mr. Sakane’s profile are as follows.

  • 1963 Graduated from Engineering School, Osaka City University
  • 1963 Joined Komatsu
  • 1989 Board Member of Komatsu
  • 1990 President, Komatsu America Co. Ltd.
  • 1994 Managing Director, Komatsu Co., Ltd.
  • 1997 Managing Director, Corporate planning Office
  • 1999 Executive Vice President, Komatsu,
  • 2001 President and CEO of Komatsu
  • 2007 Chairman of the Board, Komatsu,
  • 2007, 2008 & 2009: Komatsu was ranked No. 1 in Nikkei Excellent Company ranking
  • 2013 Executive Advisor to Komatsu