Leadership Transitions: The Handover from the Founding President to the Second Generation

Fujita：
In spring 2022, I declared that "in four years, I will become chairman with representative authority, and hand over the president’s role to someone." I then selected 16 potential successors and began preparations. Through academic training and decision-making simulations, I realized yet again that transitioning from founding President to second generation is especially challenging.

As the founding president, I often made decisions without much need to explain them internally, which meant that experience accumulated with me alone, widening a gap with others. To address this, I documented my previous intuitive approach, created handover materials, and conducted training sessions by myself. These efforts not only prepared the next president but also strengthened the management team that will support them.

Yamauchi：
The most significant outcome from the succession planning process for me was the unity developed among the second-generation leaders. While often portrayed as a "president race," we approached it as a collective challenge. After training sessions, we gathered and discussed that we'd support whoever became president. Over the past three and a half years, we have built a shared commitment to growing the company as the next generation of leadership.

—While a 2029 transition was also an option, why did you choose this timing for the leadership change?

Fujita：
As I mentioned earlier, I believe Yamauchi can only truly understand the weight of responsibility once he’s taken the president's position. Especially in the first transition from a founding president, the real challenge lies not in roles such as explaining financial results or chairing shareholders' meetings, but in how to properly hand over responsibilities that involve decision-making.

There are three aspects that are particularly difficult to transfer: First, the ability to conceptualize business strategies based on CyberAgent's people, culture, and strengths. Second, insight into the business markets, employees, and clients. And finally, the unifying power required as president. These qualities cannot be cultivated overnight. Therefore, I am committed to working alongside him, confirming each decision made on daily matters until he can fully assume the role of president.

Personally, I'm still in my 50s and could remain president for another 10 or 20 years. However, after examining examples of other companies, I came to understand that succession from a founding president becomes increasingly difficult over time. I believe this is because power and experience concentrate in the founding president, and the gap widens as time passes. That's precisely why I judged it crucial to hand over the role of president as early as possible.
 

—CyberAgent aims to become a company that endures, guided by its vision “To create the 21st century’s leading company.” What is essential to achieve this?

Fujita：
Since its founding in 1998, CyberAgent has achieved 28 consecutive years of revenue growth. From our origins in internet advertising to the expansion of our gaming division and the establishment of ABEMA as part of social infrastructure, our success may appear to be the result of good fortune. In reality, it stems from our unwavering commitment to confronting potential future challenges head-on and continuously cultivating new pillars of business.

Since 2006, we have held our “Ashita Kaigi (Meeting for Tomorrow)” to proactively address various medium to long-term risks and challenges. He also implemented a similar initiative at CyberZ, calling it the “Stop Procrastination Meeting.” This culture of relentlessly eliminating procrastination is essential for sustainable growth. It is crucial to pass on this culture of continuous transformation, even as the company transitions to second- and third-generation presidents.

We must not neglect our immediate responsibilities by using the future as an excuse, nor should we enjoy current success without preparing for the future. To ensure we make the critical decisions that shape the future, we must pass down the necessary business vision and insight required for the president of CyberAgent through generations.

Yamauchi：
I will dedicate myself to ensuring this company passes the baton received from the founder to the next generation, and beyond. To achieve this, I will first strive to thoroughly inherit the capabilities required as CyberAgent's president during my period working alongside Fujita. Simultaneously, while continuing the current management strategy, I will also execute the creation of globally competitive original IP, a project for which I am responsible.