Executive Management_Leadership_Ver01. _ “New Executives and Common Pitfalls”

Feb 23, 2026

Hello everyone.

Today, I'd like to talk about something that often happens when a company goes through a change in leadership.

When a new executive takes over, it's natural for company policies and management styles to change. The real problem arises when the new leader tries to change everything according to their own preferences. If that desire becomes too strong, even the things that are working well can easily collapse.

A newly appointed executive should first look at the company's operating profit per employee. It's also important to understand the company's overtime situation. If operating profit per employee is high enough and overtime is minimal, yet the new leader says, "I want to change the way this company operates because it's different from my style," the company will almost certainly head in the wrong direction.

Operating profit is a barometer of whether the company is adapting to market trends and industry characteristics. If the company is profitable, it means they are doing something right. That's why the first step should be to acknowledge and respect what the company has built so far.

Even if certain processes look inefficient from the outside, there are always reasons behind them-

industry-specific practices, historical context, and organizational characteristics that newcomers cannot immediately see. Ignoring these and forcing changes will damage the organization, lower employee morale, and inevitably reduce productivity. This is why I believe new executives should always start with "understanding before changing.”

On the other hand, if operating profit is low and overtime is high, that is a clear sign that reform is needed. In such cases, the new executive should apply their expertise and begin improving the organization. When making changes, it's best to limit priorities to no more than three, set annual KPIs, and move forward step by step. This approach produces results more easily.

However, if the mindset becomes,

“What is wrong with this company? I'm going to change everything at once!”

the organization will turn its back on the executive, and they will quickly become a "naked emperor." Excessive reform is dangerous.

When I was younger and entered a company as an external manager, I once thought, "This method is inefficient. I want to change everything." Yet later I realized that those methods existed for industry-specific reasons, and my lack of understanding caused confusion within the organization. This article is based on that personal failure.

New executives should engrave this principle in their minds:

“Understand first, then change.” 

If you get the order wrong, no matter how capable you are, the organization will not follow you.

That's all for today.

Please look forward to the next post.