"Third Office Implementation Companies" Interview Vol. 1 Seismic Techno Service Co., Ltd.

Third office introduction company┃2022/4/10

Vol.01

Seiichi Furuhata

Seismic Isolation Techno Service Co., Ltd. Representative Director

Building an organization that can overcome the challenges of the times with new ideas.

A third office that contributes to corporate development.

The two speakers this time are Karasawa from the Third Office Promotion Headquarters and Furuhat Seiichi, president and CEO of Seismic Isolation Techno Service Co., Ltd., headquartered in Yokohama City.

We asked him about his current feelings as the Earthquake Isolation Techno Service Third Office, currently under construction in Karuizawa, is due for completion in August 2022.

He spoke about a variety of topics, including the reasons and background for deciding to introduce a third office, the appeal of Karuizawa, the future of the company, and the seismic isolation industry.

*April 10, 2022, at Forest Corporation's Karuizawa Third Office

1. What prompted you to introduce a third office?

Forest started offering the "Third Office" in the fall of 2019, and President Furuhata was one of the first to show interest and contacted us. Please tell us how that came about.

President Furuhat: I had been vaguely thinking about expanding into new locations since January 2019, three years ago, to mark the 20th anniversary of the company's founding in 2022. I had been gathering information on the Internet and visiting real estate agents in Atami, Nasu-Shiobara, Karuizawa, and other areas.

The deciding factor for Karuizawa was the increase in corporate value, but also the perspective of BCP and the good accessibility by the Hokuriku Shinkansen. Between Kanagawa and Shizuoka, there are concerns about earthquakes such as the Tokai-Tonankai earthquake and tsunamis, as well as risks related to Mt. Fuji. In that respect, Karuizawa has fewer earthquakes and wind and flood damages, and we thought that the risk of an eruption of Mt. Asama could be avoided by looking at the hazard map.

Karasawa: Karuizawa's proximity to the city center is one of the big attractions from the perspective of BCP. Also, it's great to be able to completely change your environment and be in an extraordinary space.

This stimulates the imagination and makes it easier for inspiration to flow. We believe that conversations also naturally encourage people to express their true feelings.

President Furuhat: That's right. That's why I have high hopes for this environment and facility. What I want to value is calm communication with my employees and those who support me. And I'm convinced that this area has an environment where I can connect with people who share the same values.

When I first started coming to Karuizawa, I was inspired one day when I passed through the "Kyu-Karuizawa Roundabout."

Karasawa: Is that the roundabout at Roppon-tsuji? What was your inspiration for it? That's interesting!

President Furuhat: There are many similar places overseas and in other prefectures. Until now, I have passed through roundabouts in other prefectures on business trips, but the "Roppon-tsuji Roundabout" is an intersection where vehicles access the intersection from six different directions, go around in a circle, and then drive off in each direction!

I felt that Karuizawa was a crossroads that symbolized encounters and interactions with various people in the city. In terms of our company, our members are scattered all over the place every day while carrying out their work, so I imagined them gathering here in Karuizawa from all over the country and building relationships as they travel around (interact).

Karasawa: I see, it really is a crossroads of encounters. It symbolizes the "salon culture" of Karuizawa! But you seem to know Karuizawa very well. Have you been here often before?

President Furuhat: No, actually, I didn't know anything about Karuizawa... All I knew was the Kyu-Karu Ginza Shopping Street and the "Shopping Plaza"... (laughs)

Karasawa: So how did you find out about our third office?

President Furuhat: Initially, I collected real estate information for Karuizawa on the Internet, then visited a local real estate agency. Then one day, I saw Forest's YouTube video on the Internet. It was a real coincidence. I came across Forest, who built earthquake-proof housing over a decade ago. I thought, "Huh? Maybe?", and checked their website carefully. Then, I saw a video about a third office, and I was convinced that by meeting in person, working and entertaining, we could strengthen the connections with employees, the horizontal connections between employees, and the connections with the people who support us. I thought, "This is it!" I was impressed by the concept of a third office.

Karasawa: Was that the reason/purpose behind your company's decision to open a third office?

President Furuhat: If you ask me what the purpose is, I think what President Ozawa (CEO of Forest Corporation) said is correct. The most important thing is for mutual understanding between employees and between employees and management. I thought that being in a natural environment that is different from usual would be a change of pace and would help produce good ideas and valuable things. Also, although we have had a long and difficult time since our founding, we would like to build even stronger relationships with the people who have supported us and who have made various contacts with us.

2. Overwhelming field experience gives confidence to young staff. And also challenges in organization

- I was assisted by President Furuhata in the installation of a seismic isolation device in a seismic isolation house in Matsumoto City about 18 years ago. Could you please tell us again what kind of business your company, Seismic Isolation Techno Service, is engaged in?

　President Furuhata: Our company specializes in the inspection, maintenance, and management of seismic isolation buildings. There are many buildings in Japan that were built with conventional earthquake-resistant designs. (This is an old story, but) during the Great Hanshin-Awaji Earthquake in 1995, it was reported that seismic isolation buildings that had already been constructed were undamaged, and now they are mainly used in large buildings such as government offices, hospitals, offices, apartment buildings, factories, warehouses, and research facilities. Including residential buildings, the cumulative total by 2020 was about 10,000 buildings. In recent years, as the risk of major earthquakes has increased, the adoption of seismic isolation buildings has increased from the perspective of urban disaster prevention. We would like to contribute to the maintenance and management of seismic isolation buildings created by many design and construction engineers by inspecting and checking them downstream so that they can function properly in the event of an emergency, and we feel a sense of fulfillment and responsibility in that.

Karasawa: Your head office is in Yokohama, but does your service area cover the whole country? Do you often come to Nagano Prefecture?

President Furuhat: Currently, we are based in Yokohama and Osaka and conduct building inspections throughout Japan. Three new employees joined us at the beginning of the year, and thanks to them, both myself and my staff have been busy traveling around the country. In Nagano Prefecture, the number of buildings has increased, including government buildings, general hospitals, fire stations, offices, apartment complexes, factories, warehouses, and more.

--I've heard that young employees are doing well and that the turnover rate is quite low. Is there a secret to employee training?

President Furuhat: I think the reason so few people quit is because they find the appeal of "seismic isolation that protects the safety and property of residents and provides peace of mind" and find the work rewarding.

Building inspection and maintenance work requires specialized qualifications, and our employees obtain qualifications almost every year, with several hundred people from all over the country participating each year.

When young employees take the exam (this was before the COVID-19 pandemic), I tell them, "The people coming to this venue are all older people who work in the seismic isolation industry, in fields such as equipment manufacturers, design and construction, and you're probably the youngest of them all. But you're definitely the one with the most experience, having looked at equipment in the basements of buildings almost every day." I also send them off by saying, "If you have a lot of practical experience, older people in the industry will be able to rely on you," which seems to put them at ease.

Karasawa: That must give the young staff a lot of confidence. They'll think, "Wow, I've acquired so much knowledge and skills in just one year!"

President Furuhata: I think that this is one of the reasons why you can work in a position where practical work and qualifications are closely linked. This gives you confidence and a sense of fulfillment!

--As the company's performance improves and the number of employees increases, it seems that worries about organization have become more prevalent than ever before...

President Furuhat: Thanks to this, we have been able to receive many referrals from various people, and the number of cases in which we help with maintenance is increasing year by year. However, we are so busy with work that we review and improve our system every year, but it is not enough. In such a state, we cannot communicate well, so we thought that we wanted to use a third office to maintain strong connections between employees in order to further improve our services, increase employee motivation, and maintain retention rates. We believe that by setting up a new base on the occasion of our 20th anniversary, we can achieve this in many ways. First of all, we think that "horizontal and vertical connections" within the company are important.

Karasawa: I'm sure your employees have high expectations for it, but how would you like them to use it?

President Furuhat: We have not only an office building but also a residential building, so it would be great if they could use it in their spare time while traveling around the country. Since many of our employees are in their 20s, we would like them to experience activities that are unique to Karuizawa, such as curling. They can hang hammocks in the trees and sway in nature, take walks in the forest, enjoy mountain climbing and autumn leaves in the fall, and in the winter they can do winter sports, chop firewood as we have a wood stove, or have a doma party. Doing this as a team is sure to strengthen unity!

3. Cultivating corporate culture and company storytelling

--You are planning to open a new base at the turning point of your 20th year since the company was founded. A new story is about to begin for Seismic Protection Techno Service.

President Furuhat: Thanks to this opportunity, we were able to acquire land in Karuizawa (in the Minami-ga-oka villa area) and are building a "third office." The office building also includes a presentation room to explain about "earthquake-resistant buildings," and in the basement we have installed a life-size device for residential and low-rise buildings. We would also like everyone to see the Half Moon Theater, where you can experience powerful images and sound on a large screen. (It's a useful tool for someone like me who isn't very good at talking...lol)

Last summer, everyone took part in a "Tree Selection Tour," and the tree they selected will be used as the main pillar of the office.

President Furuhat: During the tree selection tour, we were able to choose and cut down a real standing tree. The trembling sound and vibration when the big tree fell with a thud was very impressive. It was strange, but I was very moved, and I wanted to change the appearance and location and look up at it in a new environment.

Karasawa: Everyone has had similar experiences. If you count the rings on a stump, you can see that the tree is about 60 to 80 years old. The trees planted by my grandfather after the war are now the lumber used in our homes.

President Furuhat: This experience was special. I think that the experience of cutting down the tree that will be used for the lumber of the Karuizawa Third Office was a moment that was clearly engraved in the history of the company. Just like this magnificent tree that is over 80 years old, we need to continue to study and develop so that we can continue to grow as a company.

Karasawa: It's not just a workspace for employees, but a multi-purpose office where we can introduce our business to companies and make presentations for new and mid-career recruitment activities.

President Furuhat: We are looking forward to the completion of this attractive office, which will house the daily operations of our head office, Yokohama sales office, and Osaka sales office, as well as the new possibilities that are only possible in Karuizawa. First of all, we would like to hold a ceremony to commemorate our 20th anniversary and the opening of our Karuizawa third office in this facility this summer.

4. What "third offices" bring to corporate development

- The facility will finally be completed in June (2022). How do you plan to use the third office to help develop your company?

President Furuhat: In these days when the risk of a major earthquake is increasing, the "seismic isolation structure" is making a significant contribution in terms of urban disaster prevention. By utilizing the third office, I hope that we can contribute to the industry from the downstream by "working behind the scenes that doesn't show up in public", even if it may be presumptuous.

Furthermore, through the interactions we have here in Karuizawa, I hope to generate new ideas and build a strong organization that can weather the waves of change that come with the times.