Tokio Marine Holdings: From insular to ambidex by way of the discomfort zone
In the last 20 or so years, Tokio Marine has grown from a predominantly domestic organization to a global enterprise with a market cap of $81 billion and more than 70% overseas profits. Through numerous mergers and acquisitions, the company has created a successful, highly decentralized holding structure. However, during this time, it has also faced a growing range of risks: natural disasters such as floods, landslides, and earthquakes including major disasters like the 2011 Great East Japan Earthquake and Tsunami, the Fukushima nuclear disaster, the Covid-19 pandemic and the 2023 Hawai’i wildfires; as well as intensifying competition. At the same time, its home market in Japan has become increasingly challenging, with a mature insurance sector and a population that is both aging and shrinking.
Meanwhile, fortifying the succession pipeline with international talent is a key opportunity. Even as Tokio Marine has expanded internationally, successive generations need to gain more exposure to foreign economies and cultures to acquire the kinds of expanded mindset, flexibility, resilience and range capabilities – ambidex leadership skills – that multinationals need to compete and innovate. Broadening the range of future leaders is essential for transforming the company.
Drawing on research on ambidex leadership and our work with executives from all over the world, IMD co-created a highly experimental approach with Tokio Marine under their leadership development brand known as “TLI” – Tokio Marine Leadership Institute. Incorporating bold and quite daring measures to shake up ideas and mindsets, the program aimed to shift assumptions and build bonds of trust and cooperation between diverse leaders.
Here are five things that we did that had significant impact on these leaders’ thinking, mindset and behavior – ideas that you might want to think about as you ponder the kind of training or learning intervention it will take to future-proof your business.