T'96

Kinya Seto

CEO, Lixil Corporation

If you can change that one thing, you might be able to change the world.

Last year Kinya Seto T’96 took the helm of one of the world’s biggest housing and building companies, Tokyo-based LIXIL Group Corporation. It was a different type of challenge for the 57-year-old entrepreneur, who has started more than 10 successful companies around the world and would now lead a traditional Japanese company with more than 70,000 employees in 150 different countries.

As if the change in venue isn’t challenge enough, Seto is positioning the company, which includes water technology products such as toilets and faucets at its core, to address the global sanitation crisis that claims the lives of 800 children every single day. The centerpiece of this effort is a line of low-cost toilets that cost less than $10 and require less than half a liter of water to flush. First developed by LIXIL’s American Standard Brands with the support of the Bill & Melinda Gates Foundation, the SATO lineup of products is central to the company’s commitment to provide better sanitation to 100 million people by 2020.

“LIXIL is in a unique position in that we have the innovation and experience to make a major contribution to the global sanitation challenge,” Seto says. “This motivates us, but it also means we have a certain responsibility to play our part. As CEO it is important for me to be a leader on this issue.”

The effort also will help Seto inject an entrepreneurial spirit and sense of purpose into a firm that had little shared culture when he took the helm. LIXIL was formed in a 2011 merger of five Japanese firms, and had recently scooped up U.S. rival American Standard and German bathroom fixtures giant Grohe Group when an accounting scandal surfaced in one of the German firm’s Chinese subsidiaries. LIXIL inherited the problem, which resulted in an approximately $600-million write-down and the ouster of Seto’s predecessor. When Seto assumed the role of President and CEO in June 2016, his first order of business was to set the house in order.

After its acquisition spree, LIXIL was rife with redundancies, yet Japanese labor laws limited Seto’s ability to streamline his workforce. One solution is simply to bring in more business, and with his entrepreneurial track record, Seto seemed just the man for the job. Under his leadership LIXIL is working to expand the home-remodeling market in Japan  with a suite of easy-to-install new products and leveraging its worldwide reach to introduce existing products to new markets, such as a stain-resistant ceramic that could keep a toilet looking new for 100 years. But one of the company’s most revolutionary and socially impactful innovations is its approach to sanitation in developing countries.

The first SATO toilet was introduced in Bangladesh in 2013, and more than 1.2 million are now in place in 14 countries throughout South Asia, Africa, and the Caribbean. LIXIL is also developing new toilets tailored to the unique challenges of undeveloped rural areas, dense urban slums, and regions where water is scarce. The immediate goal is to help people in need, Seto says, but other benefits will accrue over time, including market share in regions poised for growth and a sense of pride and purpose for LIXIL employees.

“I think that doing the right thing, respecting each other, the value of experimentation—these things are all central to building the culture of LIXIL as one company,” Seto says. “And SATO represents all of those things.”

Seto attended a small private high school and earned his undergraduate degree at Tokyo University. He much preferred the smaller setting and felt that Tuck was a place where a young man who still struggled with English could make his mark while earning an MBA. “I would rather be Kinya Seto than an anonymous Japanese businessman, and I thought that at Tuck I would be appreciated for who I am and what I contributed,” he says.

Tuck’s reputation as a top general management school sealed his decision. “There were many good classes at Tuck, but one in particular really changed my life,” Seto says, recalling a case study in Sydney Finkelstein’s Strategic Leadership course. The case involved the acquisition of a chocolate business in England. Closing the plant was the only option that made good business sense, and Seto remembers the class being uncharacteristically quiet because everyone was already in agreement.

“Then all of a sudden the door opened and an English guy came to the podium,” Seto recalls. The man introduced himself as a worker at the plant in question, and told the class that his sick sister and elderly parents relied on his support. “He asked us to consider what would happen to his sister and his parents if we closed the plant, and no one had an answer for that question,” Seto says. “That class gave me a profound understanding of how the decisions we make as managers affect people’s lives.”

Tuck’s cultural emphasis on treating each person as an individual also shaped Seto’s career path and leadership style.  “It is what led me to become an entrepreneur,” says Seto, who has worked to foster similar cultures in the companies he’s started. It’s been a successful mod-el. In 2000 he founded MonotaRO, a direct marketer of maintenance, repair, and operating supplies, and grew it into a $3.3 billion company.

He’s determined to apply the same approach to LIXIL, though he acknowledges that building an entrepreneurial culture in such a large conglomerate will take perseverance and some tweaking of the formula. With its potential to unite the company behind a good cause, SATO has an important role to play in the effort. Though Seto has put the full weight of his multinational behind the new brand, it remains a quintessentially entrepreneurial play. That means if it is to succeed, SATO must be sustainable from the outset.

“If you want to do lasting good, the effort must be sustainable,” says Seto, who feels a sense of personal responsibility for the program. “Sanitation is a big problem, and if you are able to do something to improve it, you have to do it. Over 800 children die of diarrhea every day because they have no access to a toilet,” he says.

“If you can change that one thing, you might be able to change the world.”

Continue Reading

Related Stories

How to Shake Up an Industry, with Tomo Cofounder Carey Schwaber Armstrong T’10

Carey Schwaber Armstrong T’10, cofounder of Tomo, is working to transform the homebuyer experience.

Read More

Bridging the Generational Divide: Meet Kinsome Cofounder Eben Pingree T’13

With his latest venture, Kinsome, cofounder Eben Pingree T’13 is helping deepen bonds between grandparents and their grandkids through an AI-powered social journaling app.

Read More

Closing the Financing Gap for Local Businesses: Meet Honeycomb Cofounder George Cook T’17

Honeycomb Credit works specifically with small businesses and allows consumers, nonprofits, and other organizations to loan small amounts of cash to a particular venture.

Read More

The Uber for Customer Support: Meet Chatdesk Cofounder Andrew Olaleye T’13

Contacting customer service feels like a chore to most consumers. But Chatdesk cofounder Andrew Olaleye T’13 says the exchange doesn’t need to feel dreadful.

Read More

Addressing the Opioid Crisis through the Power of Community: Meet Steve Kelly T’18

As cofounder of Boston-based Better Life Partners, Steve Kelly T’18 is focused on providing same-day treatment for opioid use disorder by tapping into a network of community organizations.

Read More

Making the Most of Time at the Laundromat: Meet Courtney Bragg T’18

For Courtney Bragg T’18, founder of Fabric Health, the key to helping the millions of low-income people across the country started in an unlikely place—the laundromat.

Read More

Building Solutions for the Childcare Crisis: Meet Shefali Shah T’09

Upfront cofounder Shefali Shah T’09 has long wanted to be a part of the solution for one of the country’s most pressing problems: increasing high-quality affordable childcare for all.

Read More

Meet Stemless Cofounder Koushi Sunder T’13

With Stemless, entrepreneur Koushi Sunder T’13 is offering solutions for the emerging cannabis industry.

Read More

Sweet Success: Meet Entrepreneur Sarah Bell T’14

A conversation with Sarah Bell T’14, cofounder of Spring & Mulberry, a plant-based, naturally-sweetened chocolate brand.

Read More

Building a Better Burrito: Meet Red’s Founder Mike Adair T’09

Mike Adair T’09, CEO of Red’s All Natural, credits his Tuck experience with helping him launch a leading brand in natural frozen foods. 

Read More

Walk of Faith: Meet Grain Management Founder David Grain T’89

“If you are pushing hard and facing an unusual amount of resistance, it’s probably not ‘go time’ yet,” says David J. Grain T’89, founder and CEO of Grain Management, LLC.

Read More

Entrepreneurial Spirit

Biochemistry and business are an optimal blend for founder and former CEO of High West Distillery David Perkins T’90.

Read More

Tuck Relationships Run Deep at .406 Ventures

Classmates and spouses So-June Min T’95 and Liam Donohue T’95 reflect on their winding path as co-founders of the Boston-based venture capital firm .406 Ventures.

Read More

Why We Need More Women Entrepreneurs—And Investors

A conversation with venture capitalist Elizabeth Davis T’20, an investor with the Anthemis Group’s Female Innovators Lab.

Read More

Blair Crichton

Meet Blair Crichton T’18, co-founder of Karana, a new whole-plant based meat company launched in Singapore.

Read More

Meet Allobee Chief Strategy Officer Anne Forsyth English T’08

Allobee is connecting business owners nationwide to an underutilized workforce of experienced, professional women—a mission that deeply resonates with Chief Strategy Officer Anne Forsyth English T’08.

 

Read More

Meet Military Veteran and Fitfighter CEO Sarah Apgar T’11

A commitment to public service is a current that runs through T’11 Sarah Apgar’s career and education.

Read More

Laura Scott

At Wayfair, Tuck alumna Laura Scott completely transformed the company’s operations. Now she’s dipping her toes into the startup world with Takeoff Tech.

Read More

Juliet Horton

With Everly, Juliet Horton T’14 is changing how couples plan their wedding

Read More

How to Make a Successful Startup Pitch

In her seven years as a venture partner at LaunchCapital in Cambridge, Mass., Heather Onstott T’07 has heard about 1,000 pitches from startups.

Read More

Susan Hunt Stevens

In 2006 Susan Hunt Stevens T'98 started a blog as a "a guide to going green without going berserk." Years later the idea evolved into WeSpire, a platform that uses technology and social media to promote sustainable living.

Read More

Katrina Veerman

With PK Coffee in Stowe, Vermont, Katrina Veerman T’01 turned a passion into a livelihood.

Read More

Andrew Smith

Andrew Smith T'07 chose Tuck first because he was looking for a beautiful environment where he could spend time thinking about how to maximize his impact on big challenges in the world.

Read More

Tracy Sun

Poshmark co-founder Tracy Sun T’05 turned her love of fashion and psychology into a leading mobile commerce app. Shopping will never be the same.

Read More

Gibson “Gib” Biddle

NerdWallet's Gib Biddle T'91 came to Tuck as a marketer, but then realized he was more of a builder.

Read More

Rohit Dugar

Former investment banker Rohit Dugar T'07 is transforming his beer-brewing hobby into Hong Kong's first craft brewery—and using his Tuck experience to navigate the challenges of entrepreneurship.

Read More

Jack O’Toole

For Jack O’Toole T’14, “building” and “contributing” are words to live by. As a Marine, he did both.

Read More

Roger McNamee

Investor. Philanthropist. Entrepreneur. Roger McNamee T’82 is all of these and more in a career that has taken him to the top of the tech world.

Read More

Barry Hume

After graduating from Tuck, Barry Hume T'95 joined PepsiCo’s Boston-area operations as finance director—a position that quickly provided the opportunity for advancement, but with a difficult choice to make.

Read More

Dennis Lasko

What's for dinner? Pantry, a new food retailer founded by Dennis Lasko T’08, has the answer.

Read More

Jeff Coleman

T’87 Jeff Coleman’s quest for better nutrition led him to a new, whole-food fuel for athletes and a surprising second act.

Read More

Louie Cheng

PureLiving China founder and CEO Louie Cheng T'03 is helping to improve indoor air quality in a country known for its pollution problems. 

Read More

Jacques-Philippe Piverger

According to Jacques-Philippe Piverger T'07, the one-word solution to energy poverty in developing countries, is Luci, a low-cost solar light.

Read More