Japan’s HR Transformation and the Future of HR Tech

Interview with Kazuki Iso, Head of HR Cross Lab

Interview Date: September 27, 2023

Interview & Text: Fuminori Gunji (ZooKeep Head of Marketing)

Executive Summary

Kazuki Iso, CEO of HRX LAB Co., Ltd, discusses why Japan’s HR digital transformation (HRDX) cannot succeed through technology alone. Drawing from his background in architecture, IT, and HR consulting, he explains the importance of process design, data literacy, and respect for professional expertise in the modern Japanese workplace.

Human Origin | Origins and Career Path

Could you tell us about your background and how you first became interested in HR?

I grew up in a very athletic family, both of my parents were competitive swimmers and later became coaches. From a young age, I was surrounded by people who dedicated their lives to mastering a specific skill. Although I eventually quit competitive swimming myself, that environment left a strong impression on me.

A turning point came during my high school entrance exams. I casually remarked that student-athletes had it easier because they could enter school through sports recommendations. My father, who coached competitive swimmers, strongly reprimanded me. He explained that these athletes train intensely, study seriously, and still face uncertain career paths after retirement. That moment taught me something fundamental: true professionals deserve deep respect, regardless of field. This belief continues to shape how I view talent development and human resources today.

Was there a particular moment in your youth that influenced how you think today?

Yes, there was a very clear turning point during my high school entrance exams. I made a careless comment to my father, saying something along the lines of, “Athletes can get into school through recommendations, so they don’t have to study as much.”

My father became extremely upset. He told me that those athletes trained relentlessly while also studying, all while knowing that their careers would likely end at graduation, with no guarantees for the future. That conversation stayed with me. It taught me to respect specialists who commit themselves fully to a particular field. Even now, I feel naturally drawn to professionals who have honed their expertise through discipline.

Career Shift and Breakthroughs: From Architecture to HR

You went on to study architecture. How did that connect to your later work in IT and HR?

I chose architecture partly because my father worked in construction. But once I started studying, I noticed something interesting: architecture and IT systems are actually quite similar. Both involve designing structures that support human activity.

In the mid-1990s, when personal computers were becoming more common, I became interested in software development. I taught myself programming and started my career as a systems engineer. Later, as I moved into product management, I began working closely with internal departments, including HR. That was when I realized that many organizational problems weren’t technical at all, they were about how people and processes were structured.

SAP SuccessFactors and Independence

You later worked as a consultant for SAP SuccessFactors. What did you learn there?

At SAP SuccessFactors, I worked as an implementation consultant, supporting many companies in introducing cloud-based HR systems. Through that experience, I came face to face with HR issues that are particularly characteristic of Japanese companies.

For example, seniority-based systems, vague job definitions, and ambiguous evaluation standards often lead to a strong reliance on human judgment rather than data. I also felt very strongly that simply “introducing a system” does not automatically trigger organizational change.

Is that what led you to become independent?

Yes. I wanted to work more deeply with companies on fundamental HR and organizational transformation, rather than just software implementation.

I felt that in order to truly change HR, it was necessary to bridge technology, organizational structure, and the employee mindset, not treat them as separate silos. This led to the founding of HR Cross Lab.

Why HR Technology Often Fails in Japan

Why do HR systems often fail to deliver results in Japanese companies?

One major reason is that HR data in Japan is primarily designed for administrative purposes, such as payroll and attendance management. Very little data is structured for strategic HR, such as workforce planning, skills analysis, or long-term talent development.

Another issue is the "silver bullet" myth, the belief that introducing a system will automatically improve outcomes. In reality, if hiring, evaluation, or development processes are not clearly defined, no HRIS (Human Resource Information System) can function effectively. Technology supports processes, it cannot replace them.

Automation, AI, and the Limits of Replacement

What does “Is there really something to replace?” mean in the context of HR technology?

Before introducing AI in HR or new automation tools, companies should ask what they are actually trying to replace. In most cases, technology is best used to replace manual, repetitive tasks, not human judgment or complex decision-making.

For example, if a company has no structured recruitment process, introducing an Applicant Tracking System (ATS) will not improve hiring quality. Good HR systems are built on real operational experience. Without that foundation, technology has nothing meaningful to automate.

Global HR Systems and the Japanese Context

Why do global HR systems struggle when implemented in Japan?

Many global HR systems are designed around job-based employment models, where roles are clearly defined and labor mobility is high. Japanese companies, however, have traditionally followed a membership-based employment model, emphasizing long-term tenure and internal rotation.

When global systems are introduced without adapting them to this cultural context, friction occurs. The issue is not that global tools are ineffective, but that they must be localized to reflect Japan’s unique employment culture and organizational practices.

The Future of HR | ZooKeep and Next-Generation HR Tech

How is the future of HR Tech evolving in the context of digital transformation and data utilization?

The future of human resources is moving away from a model centered on "managing" people and toward one focused on supporting individuals.

Historically, HR systems were designed for compliance and control. Going forward, HR must function as a framework that enables individuals to reflect on their own behavior and professional development. This shift is essential for sustainable HR transformation in modern organizations.

ZooKeep’s Position in the Future of HR Tech

Within this future vision, how is ZooKeep positioned as an HR technology solution?

ZooKeep is distinguished by its approach to data democracy. Rather than using data solely as a management tool, ZooKeep is designed on the premise that individuals themselves should actively engage with their own data.

In many conventional HR systems, data is "locked" for HR departments or managers. ZooKeep takes a different approach by enabling each individual to directly view and reflect on their own feedback and interactions. This fundamentally changes how employee data is perceived across the organization.

What kind of value does this approach create for individuals and organizations?

When HR data is top-down, employees often feel judged or controlled. When positioned as a resource for self-reflection, data becomes a tool for growth.

ZooKeep visualizes interpersonal relationships and everyday interactions. This enables individuals to notice patterns, for example, how they are perceived by their team. That awareness is the catalyst for voluntary, sustainable behavioral change.

Is the emphasis then less on evaluation and more on awareness and dialogue?

Yes. This is one of ZooKeep’s core strengths. In Japanese organizations especially, expectations and roles are often left implicit (unspoken). ZooKeep helps make these invisible elements visible. This stands in contrast to traditional systems that attempt to "fix" human behavior through rigid evaluation frameworks.

How does this approach support the future of Japanese companies?

Japanese organizations value harmony, yet they often struggle to discuss interpersonal dynamics objectively. ZooKeep provides a shared reference point. Instead of emotional assertions, teams can say, “This data suggests a certain pattern, how should we interpret this together?” This shift toward data-driven dialogue is a critical step for healthy collaboration.

Advice for HR Leaders

What advice would you give to HR leaders pursuing digital transformation (DX)?

Start by clarifying your business processes before introducing systems. Understand how work is done and where inefficiencies exist. Technology should follow strategy, not lead it. HR transformation is not about replacing people; it’s about creating environments where people can focus on value-creating work.

Finally, do you have a message for Japanese companies?

Japanese companies are at a major turning point. Labor shortages and global competition make HR transformation essential for survival. I hope companies will view HR Tech not as a cost to be minimized, but as a strategic investment in their future.

About the Interviewee

Kazuki Iso is the Founder and CEO of HR Cross Lab, a Japan-based HR consulting and advisory firm. With a background in architecture, IT engineering, and HR system implementation, he supports organizations in aligning HR strategy, data, and technology with real operational needs.

Bonus Section

Are there any books or content you often recommend to others?

 I rarely read business books; they don't often stay with me. One book that left a strong impression is Night Picnic by Riku Onda. It’s a novel about a high school tradition called the “Walking Festival.” My own high school years were spent mostly studying, so I’ve always been drawn to stories that capture that specific kind of adolescence.

Is there anyone you would like to see interviewed in this series? 

Yes, Jonathan F. Kestenbaum. I spoke with him at HR Tech Las Vegas. He has been involved in thousands of Work Tech implementations and understands the real situation on the ground. His global perspective would be extremely valuable for this series.