There is No Return Without Risk
There is No Return Without Risk
January 13, 2022
Interviewer

Interviewee

Etsuro Sumita
Berkeley Consulting Inc.President and Representative Director


Etsuro Sumita
The risk is believing that you can earn a high income if you continue doing your current job. While consultant salaries are increasing, the actual skills of consultants might not be. For instance, a 55-year-old consultant and a 40-year-old consultant may have similar capabilities, but the older one is likely being paid more. However, that only lasts until around age 59 - once they pass 60, their salary often drops due to mandatory retirement. (In other words, they weren't actually getting paid based on their ability in the first place.) This is why I want to develop talent in a startup environment and nurture individuals who will maintain high market value over the long term. Consultants who specialize in only one industry or a specific topic face significant risks. If the work in that industry disappears, they won't be able to pivot to something else - isn't that a huge risk? In the past, being a specialist was seen as a good thing, but that is no longer the case today. In my opinion, people who can only do one thing are headed down a path of decline.

Well, that is true... So what do you suggest consultants do in the future?

Etsuro Sumita
It's not only about consultants, I feel that it applies to me as well. Just because SFIDA X succeeded in the web industry doesn't mean the web industry will stay the same 20 or 30 years from now. AI might rise to prominence, and given the rapid pace of the industry, I don't believe that what we're doing now will be enough. That's why I started the development business at STYLE FREE. Similarly, the engineering industry will not remain in the same form 20 or 30 years from now. So we're not just following the current path - we are also venturing into completely unknown territories. Now, I've stepped into the consulting industry because there are some strange aspects to it that make you think, "This is what's weird about the consulting industry". For consultants, the key to success is to not only stick to the current industry or topic, but also embrace new challenges. And that doesn't necessarily have to be confined to consulting work. I believe that people who actively embrace new challenges, rather than just being critics, will find success. Continuing to excel in your current role within your learned industry may not be difficult, but it could lead to a decline in your market value over time. Honestly, in society, many people experience a decline in productivity as they age. The opportunities for part-time jobs differ significantly between those in their 20s and 50s. No one wants to age, right? Therefore, you can eventually achieve financial success by consistently taking actions to enhance market value - I do not believe it will be an enormous amount, though. Many individuals may boast about their prestigious titles at large companies, but may struggle to find employment elsewhere. I also have doubts about the significance of titles within the consulting industry.

Do you have doubts about the titles used in the consulting industry?

Etsuro Sumita
Definitely. The Japanese place a significant emphasis on titles. Personally, I do not see the obsession with them. I believe titles are not solely earned through hard work, but rather something connected to one's abilities. Hence, titles are not particularly relevant. In essence, individuals with high abilities naturally hold positions that match their skills. Taking all of this into consideration, I aim to bring about a change in the consulting industry and, more broadly, the Japanese corporate culture, at least within my own company. I plan to assign more responsibilities to those who contribute significantly, irrespective of their titles. It would not be surprising for someone to skip all titles and suddenly become a director. Well, of course, it is those who deliver results and support the company who become executives. (laughs) Members who focus on contributing to the company, rather than competing for titles, are truly commendable. Furthermore, it is crucial to view work as work and money as money.

What do you mean by work as work and money as money?

Etsuro Sumita
Working enhances one's own capabilities and yields outcomes - to put it simply. However, generating results is a challenging task and demands a considerable amount of energy. The failure to initiate a business often stems from a lack of energy, rather than a lack of ability. Professionals use substantial energy to achieve success, and many find it to be their life's work or a worthwhile pursuit. Conversely, I do not think there are many people who can produce results by doing something unwillingly. I believe this encapsulates the essence of work, making it an interesting endeavor. On a different note, I think money can be earned not only through work, but also through investment. To begin with, don't you think that the wealthy in the world are people who have succeeded in investing, rather than people who have actually gotten rich by working?

Certainly.

Etsuro Sumita
Right? So, this is the coming era, or rather, it has already begun. It is crucial for even young individuals to engage in investments. No, it is precisely because you are young that you should invest. And investing is also a form of learning. I often talk about this mindset to young people. Work is something to improve one's ability and make the world a better place. Investing is something to help improve one's life and those around them. Work is about looking ahead, learning, and growing. Investing is also about learning and achieving success. Both require the ability to look ahead, so I do not think people who only do the work they are currently doing will be able to invest. There is no return without risk in investing, so it is all about how much risk you are willing to take. Work is also about imagining your future self, understanding the risks, and then challenging yourself to take those risks in order to gain returns. I believe that is what's truly important.
What are the risks faced by consultants in high-income industries?