Zennovation: An East–West Approach to Business Success

Praise for Zennovation "This is a great book by an enterprising Japanese entrepreneur, Tomio Taki. It is written in such a way as to give the reader insight into the Japanese culture as well as experience the tough decisions that people go through starting a business, no matter what part of the world you′re in. This book can apply to anyone in any country—its message will clearly translate to readers in any language." — Karl Eller , Chairman and CEO, The Eller Company "As the Chairman of the Board of Trustees at Philadelphia University, with confidence I can say that reading this book underscores everything I believe about business and education." — Bill Whitmore , Chairman, President, and CEO, AlliedBarton Security Services "He is the exact opposite of a typical business man. He is the most trusting, and the most trustworthy, person I know. He was my teacher." — The late Ricky Sasaki , President and CEO, Link Theory Holdings Co. "He is a great follower, a team player, which enables him to be a great leader." — Marin Alsop , Music Director, Baltimore Symphony Orchestra "He is a symbol, an example of how best to combine disparate cultures into one personality. I always learn from him." — The late General Meir Amit , former head of Mossad and former chairman of Israel′s Center for Special Studies

Preface ix Introduction xiii PART 1 JAPAN 1 Chapter 1 Optimism, Entrepreneurship, and Raincoats 3 Chapter 2 Losing My Father 21 Chapter 3 Changing Takihyo with American Brashness 27 Chapter 4 A New Takihyo Headquarters for a New Age 37 Chapter 5 Expansion and Distribution Channel Management: The Late 1960s 51 Chapter 6 Taki Gakuen and Asking the Simple Questions 65 WRAP UP JAPAN: RESPICE, ADSPICE, PROSPICE 73 PART 2 UNITED STATES 85 Chapter 7 The Break from Culture 93 Chapter 8 Outside Factors Wound Takihyo 99 Chapter 9 Now, the Good 109 Chapter 10 The Lion 115 Chapter 11 Negotiating for Anne Klein 125 Chapter 12 Losing a Friend 133 Chapter 13 Finding New Management 141 Chapter 14 Growing Anne Klein 147 Chapter 15 No Kickbacks 157 Chapter 16 Elevating the Designer 163 Chapter 17 DKNY—A New Brand, a Diffusion Line 171 Chapter 18 The Initial Public Offering of Donna Karan International 181 WRAP UP AMERICA: RESPICE, ADSPICE, PROSPICE 191 Conclusion: Zennovation in Retrospect 199 Acknowledgments 209 Index 211

TOMIO TAKI is credited with bringing Western fashion to Japanese consumers. He guided his family′s 250–year–old company, Takihyo Co., through nearly forty years of unprecedented growth, transforming it from a leading kimono manufacturer to a broad–based publicly held company. He was first to implement mass–manufactured sportswear in the US when he bought the Anne Klein Company, ultimately becoming the owner of the company and the man behind Donna Karan. He has consulted for, financed, or directly managed both private and public companies on nearly every continent. He has been involved in ventures ranging from the birth of high–definition television to owning and operating private golf clubs around the world.