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Pointing Fingers

With Nova in ruins and its trustees looking for a receiver, the temptation to assign blame for the whole mess is hard to resist.

A letter to the editor in The Japan Times states METI "imposed their sanctimonious and totally inappropriate penalty upon Nova will spare a thought for the 7,000-odd foreign and Japanese staff who now find themselves unemployed."

This is some pretty circular logic: penalizing Nova harm its employees and is therefore a bad thing. The Rosetta Stone of Nova's bankruptcy is in METI's 23-page report released in June, a translation of which can be found here. What Nova did was not a "minor misleading transgression in advertising" or done "to appease a mere handful of disgruntled indolent ex-students" to bring down "a relatively successful business," but a systematic ripping off its customers for years that was written down in operating procedures drawn up and distributed by head office. Apparently this seems to be OK with the author as long as he is allowed to keep his job.

Granted, METI did succumb to political pressure and tolerated Nova's business practices, but after the Supreme Court's decision in April that ruled that Nova's refund policy was illegal plus the mountain of complaints from students lodged with consumer agencies, METI had no choice but to punish Nova.

Despite its faults, METI should be the focus here. The problem is Nova's business practices, and lack of a business plan. Nova was already on the path to ruin by the time METI raided Nova in February and Sahashi's "plan" to was open more schools.

In autumn 2004, Nova executives gathered at the company's general headquarters in a high-rise building near JR Namba Station, to hear Sahashi's strategy for overcoming the problems the company faced.

Sahashi is said to have told the executives, "We'll get through this crisis by rapidly increasing the number of schools."

Within a year, the number of Nova schools rose from a little more than 600 nationwide to more than 900. But Nova still struggled financially and in March 2006 fell into the red for the first time since its shares were listed.

Nova achieved such rapid growth because of its system of booking as sales 45 percent of the advance payments for future lessons, meaning the company was opening new schools on the basis of future revenues.

As we have seen over the past four and a half months, Nova has done nothing to change its ways. Pointing the finger at METI makes no sense when the root cause of the crisis is Nova's management. This is where everyone's anger should be directed.

A recent commentary on Japan Today also makes similar arguments on the collapse of Nova but bizarrely asserts, without offering any supporting evidence, that people are gleefully gawking at the Nova train wreck. The crux of his argument is that people might get what they wish for—punishment of Nova—only to suffer the consequences—loss of employment:

But I wonder if the people salivating over the school’s troubles really know what they’re wishing for — like the simultaneous unemployment of thousands of people, foreign and Japanese alike; the squandering of hard-earned money by hardworking students who will probably have to fight tooth and nail to recover any of what they are owed; and the possible eviction of teachers from their apartments whose leases are controlled by Nova.

Again, this argument completely absolves Nova of any wrongdoing because the punishment affects teachers and is therefore bad. The author then tries to argue that Nova was not always about the bottom line:

I worked for Nova for over a year, and certainly felt at times that corporate policy appeared to put the bottom line before the interests of students, that at times managers were directed by superiors to be more interested in enforcing petty rules than training teachers. But the tragedy of these situations, and the bloodlust that surrounds them, is like every other large company that has run into similar circumstances — the people everyone is directing their anger towards will certainly not be most seriously affected.

During my time at Nova I met many kind and decent students who paid good money to study with and learn from native speakers. Many of the teachers and Japanese staff were dedicated and hard-working — and they are the ones who stand most at risk. They are the ones with bills to pay and families to support, and they are the ones facing the most uncertainty.

No one is doubting the hard work of the staff and teachers, but to say that Nova was only about the bottom line sometimes makes no sense. Were Nova a real educational institute, the author would have a case, but Nova is/was a for-profit company. It's always about the bottom line. And what is this "bloodlust" he's talking about?

Then he tries to cast doubt on past events:

At its best, Nova employed thousands of foreigners, gave them the opportunity to live and work in another country, and at the same time exposed Japanese people to native English speakers in a way they never had access before. It was and is a place where people come not only to study language, but also share their voices and their culture.

At its worst, if the reports are accurate, Nova undertook policies which misled students and made it nearly impossible to get contract money refunded. I am neither an apologist nor a defender of the school’s policies, but I do believe that things ultimately catch up with us, and certainly in this case with the government ruling last summer and the current financial troubles, this is beginning to happen.

"If the reports are accurate?" You've got to be kidding me. The Supreme Court ruled that what Nova was doing was illegal. What does he think has been going on for the past four months?

He concludes with:

So, perhaps whatever compels people to take such joy in this potential misfortune might be met with some temperance. Yes, it’s hard to look away. But watching is one thing — and wishing is something else entirely.

Again, there is this mystery group of people elated with Nova's misfortune. Let's get back to reality: Nova failed because of its poor management. The past four months have exposed Nova for what it is: a con that duped everyone into thinking that it was a great, big company.

Japan: 
nova
Eikaiwa: 
Naked Theft

Comments

What is "circular" about putting SOME responsibility on METI?

The "sanctions" were quite malicious and didn't really support the court order. In fact, if anything, they pushed the company off a cliff so that no one will ever see their money again. Had the METI sanctions been more constructive rather than destructive - in other words, focused on restructuring, payment plans, etc. rather than on "punishment" - the refunds might have been paid. Staff might have been paid. Instructors might have been paid. Sahashi might be in prison. If anything, all the METI sanctions did was let the bad guy get away. They didn't do much in the way of actually punishing those who should have been punished.

Yes, Nova itself was an unethical organization, but I highly doubt an ethical school exists in Japan. The Eikaiwa industry as a whole seems rotton to the core.

I think the person who posted this is very unclear in what he is trying to say. Is this posting supporting, opposing, or clarifying the quoted statements. Both arguments amount to the same thing, but one takes on a very slightly different perspective.

The posting in quotations basically says NOVA is reaping what it sowed, which means NOVA deserves what is happening now.

The person who posted this is saying about the same thing, that it's NOVA's fault due to bad management.

So, what is the person who posted this trying to argue or say?

There are quotations followed by, what seems to be rebuttals, but concluded with a supporting conclusion.

So, what was the point? Added support, opposition, clarification. what?

It is true, NOVA collapsed because of bad, and we can now say, criminal management. I believe that METI sanctions only sped up the process of disintegration. But NOVA operated for 26 years (since 1981) and forced teachers to work, without them knowing, under illegal conditions (no national health insurance being one). It is only a few years ago that the General Union managed to get NOVA to correct some of her illegal practices such as fining teachers the equivalent of the price of 8 lessons for being late (by law the maximum is 4), not providing teachers with the legal number of paid holidays or not paying teachers and staff unemployment insurance etc ... So where were the government or government agencies during all these years? and why have they allowed a company like NOVA to get away with these practices? The answer I believe is CORRUPTION. Not only the whole eikawa business is rotten to the core, but also the agencies that are supposed to regulate and check this industry.

I agree, but given the fact that Sahashi still refused to see reality right up until the day the company sought bankruptcy protection - his ability to learn and change approaches seems somewhat non-existant.

I am/was a NOVA teacher. So I can say that I have seen this situation from the inside out. There are many reasons why NOVA is in the position it is in now. Many parties are to blame. However, I have to respectfully disagree with Shawn's opinion about "a mystery group of people who are elated with NOVA's misfortune" (at the end of the first post on this thread).

I can attest to MANY instructors and former instructors who fall into this group. It is a REAL GROUP!! Some of the people have "legit" reasons for their gripes while many of them just like to bitch and actually don't have much of a life. Many of the instructors who fall into this latter category basically came here to party and get girls. The ones I worked with basically had limited social skills, had dead end jobs back home if at all, and couldn't get a date if their lives depended on it.

Shawn these lowlifes do exist. Thankfully not all of us were of this ilk. They will dance in the streets when the fall of NOVA is complete utterly unaware of the consequences to themselves (no salary...no rent...no drinking money...no place to live...less easy access to "hot Japanese chicks") and others (instructors who tried to perform their jobs with integrity).

HOPEFULLY the lot of them will GO HOME and get a taste of the REAL WORLD!

Yes, the main cause was Nova's mismanagement and bad business practices. Yep badly run business that failed. People have to be responsible for choosing the company they work for and buy lessons from or stock in. Government has a role. Have to make sure the companies play by the rules. But looks like it failed there ... Just look around you everyday. Loan Companies, Diet ads, plastic surgery. Even the universities advertise with deception... How much of education is a scam ?

Guys, you need to be careful on Let's Japan.

Only opinions that roundly, unmercilessly condemn every aspect of NOVA are tolerated on this website. Any comments - however well-reasoned or valid - that deviate from this dogmatic triple red line will be savagely ridiculed and berated.

The unemployment and penilessness of thousands of people is something to be celebrated with childless jeering and callous gloating. No other reaction is permitted on Let's Japan.

You have been warned.

Are there people who celebrate that Nova is falling... yes, there are, and I know this because, I am one. Do I want people to be unemployed... well, NO I don't. But, seeing that these people have been warned over and over again that this would happen, well, if they had applied for a job in August, then they would now be past all this for the most part. But what about the people who worked at Nova so long that they couldn't possibly find another job and start at the same pay... well, if you worked at Nova that long, then you knew that the company was shady, (as I did after 2 years when I chose to try and find something better). I'm sorry for all your trouble. But this is glorious to see the beast stumble and fall... stumble... stumble... almost get up... shake... make sure anyone looking knows it's up shits creak... stumble and fall...

You should have left 2-6 months ago, and although you have my sympathy... not that much...

First of all, who the fuck said teaching in Japan was so much easier than working back home? You are living in an expensive foreign country with no help or support and most people can't speak or read here. I can get drunk all I want back home and go into work just the same.............it's actually much easier. I guess the only exception is if you have no education or work skills...........

I am one of the last of those that went to work,
I truely feel for the teachers that were there
and are there! Most of the people that I work
with will gladly go back to work and try to do
the things that they enjoy doing; teaching English.
For those out there that are dancing in the streets
and celebrating, I hope that you find solice in
your actions. I hope that Nova/new name continues
for I truely love what I do and the people that I
work with!

To all of the young smucks who want to call
out all of the insults. Please do, for if you
had any respect for this country or the people
that you live among then you wouldn't make
such hateful comments. I do wish that all of
the bitter Americans go home. For the rest
of us, be patient.
For the few that want to call/or make statements
about people without meeting them, that is fine.
If I ever meet you in person I will repay you
for your kindness.

youre having a laugh!
the govts gonna start fingerprinting us all from next month to reduce crime!
because a japanese person never committed a crime, right? ever?

what with? a kiss?

Nova hasn't fallen because of the sanctions put on them - I think it would have fallen anyway. Why?

Because METI proved in their report that Nova had deceived and lied to customers. And as a result of that, the customers have wanted out, and it's reached the point where the company can't function any more. That's why it's fallen.

I'm sure the government knew that the effect of this would likely bring the company down. However, they've not let that prevent them from exposing the fact that customers have been duped and that Nova was cheating them.

And that, in my opinion, was exactly the right thing to do.

O.k., I'm an American, and I'd like to know why I'm so bitter and why I should go home? And why is it that only Americans are bitter? I'm disappointed with this whole situation, but I'm not hate-filled at Japan for it. It's not Japan's fault. I chose to come here. No one forced me to. If anything, it's coments like yours that WILL make me bitter. If you actually have an intelligent, thoughtful, well-reasoned arguement for this, I'll listen.

If not, then don't bother.

Could you explain to me what it was about my comments that you thought weren't intelligent, thoughtful or well-reasoned?

I'm not trying to stick the boot into anyone here, I'm trying to express what I think has happened in this situation.

that over the past 5 or 6 days this site has had declining participants, and fewer usefull information. to be honest, i feel like i am at a party when most people have gone home, and all thats left are the few that are gonna sit around and talk more and more crap until they fall asleep.
i just mean that all we do is bicker and talk about 'hanging on' for some 'what if' fantasy.
i'm sorry if you think i am a bit crap, but i am going home.

what ever the rest of you do, dont be the last one at the party wandering where everybody went.

thanks, and good luck.

yours,
the kid.

I also disagree with the article here. The "mystery group" of people who want Nova to go down doesn't exist? We all know it exists. They made it quite clear on these forums that they do exist. I also know some personally.

I do wish that all of
the bitter Americans go home.

Why does it have to be Americans? Everywhere I go in this country I get asked two questions. They aren't even properly formed questions in any language, but two words with rising intonation.

"American? NOVA?"

At least I don't have to answer them both yes anymore, so sit on your own ignorance and spin.

The comments that I posted were in
response to verbal abuse that was
posted but now erased. I have worked
with a lot of good people over the
years in Japan. I have helped a lot
of people adjust and learn about the
country. I have also met a lot of
people tht expect that they get things
the same way as they did/do in their
home countries. But this is not your
home country. You have to learn to
deal with a new culture. This posting
maybe far off track but it is in
response to my last posting/replies.

It is clear that the Japanese Government is as corrupt as Nova. They had let a deeply corrupt company continue to operate for many years, that blatantly broke Japanese law. Two clear examples of their complicity is the fact that they ignored Nova`s non-payment of Shakai-Hoken ( National Insurance). They continue to ignore this law for many schools - this is blatantly racist. In addition the Government ignored the non-socializaton policy of Nova for many years until the Osaka Bar`s rulings.It gives me little hope that the Government is now trying to `help` Nova teachers - I think they will further delay UI payments in the hope that many foreigners will go home. It is clear that some Government members received money from Sahashi for their complicity in Sahashi`s crimes.

Tue, 10/30/2007 - 13:57 — rev.paperboy (not verified)

Anyone blaming METI for the demise of Nova needs to give their head a shake. It's like a bank robber blaming the police for his being in prison. The cop (METI) that arrested the robber (NOVA) may have been the instrument of his downfall, but he is in jail because he robbed all those banks. Nova used dishonest, even criminal business practices for years. It finally pissed off enough people that it ran out of protectors and was punished for its crimes. To whine that the big bad government put Nova out of business by not allowing them to continue to break the law is just plain stupid.

A mate just told me that in one of the papers, it read that the Government is going to give first dibs at any money owed to the teachers/staff (that bit he didn't make clear when I spoke to him - i.e. teachers or staff as a whole). Hope this gives a chink of light to any out there struggling to make sense of all this.

METI just drilled a small hole is a sinking ship.

First, let apologize for the deleted comments. It appears that when I delete offensive comments, some innocent posts associated with the offending note get axed as well. I've switched to this flat display of comments to see if this improves things.

OK, let me address some of the comments in response to my blog:

Mystery group of people

OK, I'm not denying they exist, but to base an argument on a faceless group is weak. And if the author bases his arguments on the rants of anonymous posts he read on an Internet forum, his argument is yet weaker. My question is: why is this group so happy? Is it because they were horribly wronged by Nova and see its failure as payback? If so, these people need psychological help. I suspect that they are made up of Nova long-timers lashing out because of the horrible realization that they made a terrible choice in staying with Nova for so long. They have nothing to show for their efforts.

On objectivity and Nova doomed

My apologies for deleting the post from the commenter who questions my objectivity and says that I have been nothing but doom and gloom. This is nitpicking since I've been doing more translating of news articles than punditry. I've said that Nova was doomed and people should get out, and look where the company is now. It's bankrupt. I've been blogging this for months, and the press has been equally ominous in its reporting. The writing was on the wall months ago and people should have gotten the hint then that Nova was in dire straits. The teachers that couldn't get out in time are in a real bind that I would not wish upon anyone.

As for being objective, thanks for the advice, but I have been blogging the facts of the Nova's failure ever since it was raided in February. If you disagree with my opinion, fine, but tell me why.

Malicious sanctions

This is the most specious of all arguments, in my opinion. Were the sanctions excessive or malicious? I don't think so. As I wrote, METI did what it had to do. One commenter wrote that the sanctions should have been constructive rather than destructive. My question is: what would be a suitable punishment in this case? The commenter needs to read the METI report I translated. METI offers a constructive approach to Nova yet Sahashi did absolutely nothing to change the structure of the company. In fact, he abandoned it when he went into hiding.

METI specifically told Nova to start providing customers with proper contracts that describe in detail what is being purchased, stop its misleading advertising and sales pitches, and refund monies owed to students when contracts are canceled. METI also ordered Nova to report to METI quarterly over the next two years so that they could confirm that Nova had in fact cleaned up its act. If this is destructive, what should METI have done?

Another commenter says that Nova has been breaking the law since it was founded, I find it curious that people (and the union) who have been calling for Nova's blood for so long, now blame the government for finally acting.

As for the circular argument, the letter to the editor calls the punishment a "sanctimonious and totally inappropriate penalty." So he is saying that a company that has been breaking the law shouldn't be punished because people might lose their jobs. That doesn't make any sense. What's the alternative-- let Nova continue to break the law?

The significant problems we have cannot be solved at the same level of thinking with which we created them.
-Albert Einstein

—

Shawn

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