Disasters, Rebuilding and Leadership – Tough Lessons from Japan and the U.S.

Disasters, Rebuilding and Leadership – Tough Lessons from Japan and the U.S.

Oct 03, 2013

On March 11, 2011, deep below the surface of the Pacific Ocean, enormous seismic forces reached a tipping point. At 2:46 p.m., one of the earth’s tectonic plates suddenly shifted, thrusting violently underneath another. The North American plate was pushed upward with such force that the movement generated a massive tsunami. It took the wall of moving water 51 minutes to reach the coast of Japan, some 45 miles away. In some places, the tsunami towered more than 125 feet above the ground when it hit. Thankfully, the height of the wave was far less where it came ashore near the Fukushima Daiichi nuclear power plant — “only” 50 feet high. Still, the nuclear disaster caused by the earthquake and tsunami has been rated by the International Atomic Energy Agency as equal in severity to the 1986 accident at Chernobyl, the worst nuclear disaster on record. The complex catastrophe — earthquake, tsunami and nuclear meltdown — killed close to 20,000 people, displaced hundreds of thousands more and contaminated a large swathe of beautiful countryside for decades or longer. More than two years later, Japan is still struggling to recover and prevent even more devastation. On May 24, 2013, the Initiative for Global Environmental Leadership (IGEL) sponsored a panel at the Wharton Global Forum in Tokyo to consider the leadership lessons generated by the Fukushima disaster, and to look at its impact on Japan’s energy policy and the resettlement of afflicted areas.Lessons in Leadership from the Fukushima Nuclear Disaster

While the scale of the natural disaster in Japan was beyond the experience of anyone now alive, it was far from unprecedented and should have been anticipated, according to several post-Fukushima reports. Yet those in leadership positions failed to adequately prepare for the catastrophic events of March 2011. Unwilling to face up to the rare but predictable worst-case scenario, government and industry leaders were quickly overwhelmed by events. The judgments they made and the actions they took — or failed to take — often compounded problems. A close look at these mistakes offers valuable lessons for leaders facing disasters in the future.

Renewable Energy for Japan: A Post-Fukushima Quest

Since the devastating disaster of 2011 exposed Japan’s major dependence on nuclear power, the country has announced a plethora of renewable energy projects. But can Japan, with few natural energy resources of its own, easily make the transition to sustainable sources? Is such a switch practical, and does the political will exist to do so?  In fact, Japan is developing robust wind and solar industries, but both face stiff challenges. And despite many misgivings, including more recent leaks of radioactive materials at the Fukushima Daiichi nuclear plant site, the Japanese government has pledged to rebuild the country’s large nuclear network.

A Tale of Two Storms: Rebuilding After the U.S. and Japanese Disasters

After major coastal storms in both Japan and the Northeastern United States, the question has to be asked: Should population-intensive development be rebuilt in areas subjected to repeated flooding and climate-related sea-level rise? There are no easy answers, especially when people have lived in those shoreline towns and cities for hundreds or even thousands of years — and emotions run high. Short-term political considerations almost always encourage rebuilding, but increasingly the case for subsidized relocation efforts is at least being made.

Unknown's avatarAbout bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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