Facilitating business between
Australia and Japan

Advisory Board services

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For Japanese companies doing business in Australia, it may be difficult to maintain continuity because of the policy of regular personnel changes. Establishing an Advisory Board of people experienced in doing business in the Australia Japan relationship would provide continuity as well as assisting to build networks, understanding local politics and business practices and generally supporting growing the business.

Rather than find individual members to serve on your Advisory Board with a separate fee for each member, KBA, with its unique team of Australian and Japanese experts can be your Advisory Board where you can get the benefit of the depth and variety of experience of the entire team for a lesser fee and still be able to consult with individual members you require.

An advisory board of seasoned experts having significant experience in the Australia Japan relationship can add real value as follows:

1. CONTINUITY AMID PERSONNEL CHANGES

Every company operating in a foreign market will have difficulty in finding the right people to run and staff the local office.

A well-constituted Advisory Board can assist in finding good quality people to staff the local office, while complementing the skills and experience of the existing local staff. They can also provide continuity with key stakeholders of the business while maintaining institutional knowledge.

2. LIAISON WITH HEAD OFFICE

Companies operating in a foreign country must compete with their sister companies in other markets for attention and resources from Head Office. Local management in a foreign company may have difficulties in explaining to Head Office the benefits and risks of a new business venture in order to getting the necessary approvals.

Where the CEO of the foreign subsidiary is a local employee, she or he will usually need assistance to interact effectively with Head Office.

An experienced and well-respected Advisory Board can be a valuable bridge with Head Office.

3. PERSONNEL MANAGEMENT

Australia and Japan have different language, culture, business practices and employment policies.

Managing a workforce with local employees and foreign management will always have difficulties because of these differences.

4. EXPANDED NETWORK ACCESS

Even if a foreign company has established operations in a local market, its institutional relationships will generally be limited to its chosen business sector and clients, while the personal relationships of its seconded employees are limited to previous experience in the relevant country, or result from current assignments.

Furthermore, personnel within client entities, and the company’s immediate business relationships with government, business associations and universities, also change regularly.

The deep personal connections which Advisory Board members have can assist in communications with existing stakeholders.

A well-constituted Advisory Board will have well-established connections across government and industry that can complement and expand the company’s existing relationships.

5. DEEP LOCAL MARKET INSIGHT

It is impossible for foreign seconded employees to really understand a local market. It’s also impossible for the most experienced local businessperson to fully understand their own market.

Every major local business has a board of directors with diverse local skills, experience and market knowledge to guide senior management.

A foreign company operating in a local market can achieve the same benefits for senior management with a well-constituted Advisory Board. (See point 8).

A well-constituted Advisory Board can assist management of foreign subsidiary to better understand local economic, political and business trends, which can assist in developing business plans and recognising new business opportunities.

A well-constituted Advisory Board can assist in having the workforce and management understand each other better and work effectively to grow the business.

6. RISK MITIGATION

Local political, economic and business risks are constantly changing.

A well-constituted Advisory Board can assist management of foreign subsidiary to monitor and understand these risks, resulting in better risk management practices.

7. ENHANCED CREDIBILITY AND REPUTATION

Having respected people on an Advisory Board signals commitment to the market and builds trust with stakeholders—customers, regulators and communities alike—helping build credibility.

8. ADVISORY BOARD VERSUS STATUTORY BOARD

Getting senior well-respected members of the local community to serve on a formal statutory board of a local subsidiary of a foreign company is often difficult because of the onerous legal obligations, responsibilities and liabilities imposed by local laws.

A well-structured Advisory Board does not attract these obligations, responsibilities and liabilities and still provides all the benefits of having a diverse, experienced and well-connected formal board.