Is NOVA good as dead?
August 22, 2007
By Ken Worsley
Things just seem to be getting worse for NOVA, Japan’s largest English language school operator. For the last fiscal year, the firm posted a 2,589,000,000 yen loss in operating profit on its consolidated balance sheets. It’s share price, which hit an all time high of 1,750 on March 24, 1999, has fallen dangerously over the past months. Two years ago this week, NOVA shares were going for about 200 yen; on Tuesday they closed at 54 yen, down 4 yen from the previous day’s close.
Everyone already knows that the firm was slapped with a six month ban from effecting contracts longer than one year with customers by the Ministry of Trade, Economy and Industry about two months ago. NOVA still has four months to go, and things are looking bleak.
Still, since there usually tends to be little concerning the details of NOVA’s situation in Japan’s press, I was a bit surprised to open this week’s issue of Toyo Keizai (one of Japan’s larger business magazines) and see an article on page 19 detailing just how bad things are getting for NOVA.
The article is entitled 強まる資金繰り不安説 袋小路のNOVA商法, or Intensifying Financial Anxieties: Nova’s Dead-end Business Model
I had heard that NOVA was late paying their staff last month and that the company issued a 750 million yen corporate bond at the beginning of August, which I assumed gave it the cash to pay instructors this month (which was the 15th or 20th - could someone confirm for me?). My own estimates put their foreign staff payroll in the range of 910-1040 million yen per month, so with some cash lying around, it seems they just managed to squeak by this month.
Oh, and rumor has it that the above mentioned bond yields 2% and is unsecured.
At any rate, the Toyo article laid out just how bad things are at NOVA. Here are some highlights:
- NOVA has been late in paying its suppliers/business partners
- NOVA fell into arrears for printing costs at the end of July
- NOVA failed to pay an advertising firm on August 10 (don’t see many of their ads anymore, do you?)
- Scheduled bank repayments have ceased
I’ve been planning on writing something longer considering what’s happened with NOVA (and NCB, and Lado, and ABC). The industry has already seen three noticeable busts since January 2006, and though there are many reasons why they’ve happened, it seems that management of the existing firms wants to keep its collective head in the sand.
A quick look at NOVA’s plan for business improvement shows the lack of ideas rampant amongst management in this industry. NOVA’s big plan? Increase the number of teachers by 98 in August, 527 in September and 686 in October. This is supposed to help students be able to take the lessons they want. One has to wonder if those numbers even cover replacement needs; I estimate that NOVA loses about 160 teachers during normal months. One must assume that they are running away in droves in search of more secure employment at the present.
The mindset betrayed by this phony “business improvement” plan is just one of many, many reasons why this industry is slowing decaying and rotting from the inside out (or from the top down).
However, the point of this piece is not to get into those reasons. When I saw the Toyo article, I knew I wanted to translate it for this site, but someone graciously already has. Hats off to Sean at letsjapan.org, who posted his translation a few hours ago in a post entitled Toyo Keizai Article: Is Nova Running Out of Money?
What follows after the cut is Sean’s translation, though you really should go to his site to read it.
The end of the road for Nova’s business practices as cash flow crunch intensifies
With METI sanction and repeated missed payments, Nova stands at a precipice
Rumors of cash flow problems at Nova, the largest English conversation school in Japan, are coming to light. The August 14 announcement of the allocation of new shares to a third party was for a mere 10 million yen. The spokesperson for a venture business within the TEPCO group that has become a business partner of Nova explains: “We had been talking about working together, but they put forward the idea of increasing capital at the beginning of August.” With Nova chasing after such an exceptionally small amount of capital, is it running short of funds?
According to a credit research company, Nova has repeatedly delayed payment to business partners. In addition to its regular repayments to bank(s) having been stopped, Nova had fallen into arrears for printing costs at the end of July, and asked an ad agency to defer a payment due on August 10th. The July salaries for Nova staff were also paid late. Salaries for the foreigner instructors, the lifeblood of the company, are paid on the 15th of each month. There were fears that Nova might not make it past August, but a 750 million yen private placement bond issue on the 7th bought some breathing room.
Sharp decline in new students
Nova’s cash flow problems are a result of the collapse of its “bicycle business model.” While Nova quickly grew to nearly one thousand schools, it’s primary source of capital came from its students paying lesson fees up front. This money was pumped into opening new schools which in turn collected more money, which was then put towards opening yet more schools. Lather. Rinse. Repeat.
But the Ministry of Economy, Trade and Industry threw a wrench into the works when it ordered the partial suspension of Nova’s business in June. The number of new students decreased and the paying out refunds to students who canceled their contracts began to eat into the flow of cash. Under an accounting item labeled “Deferred ekimae ryuugaku service income,” the total prepayments owed as of the end of March last year was 31.6 billion yen, but dropped 6 billion yen over the ensuing year indicating that banks have cut off funding.
The president of Nova, Nozomu Sahashi, is a well-known for his intense personality. One venture businessman spoke of a marathon meeting that started at three in the afternoon and lasted until five the next morning. This is in contrast to a uniquely opaque way of doing business and transactions with affiliated companies that sell videophone systems for Nova’s ochanoma ryuugaku.
Nova’s only hope at the moment is Sahashi himself. In the previous fiscal year, he received received 400 million yen in capital funding from Nova Kikaku. He used some of his shares in July as collateral to drum up capital from small and medium-sized brokerages. What will he pull out of his hat for his next trick?
Comments
44 Responses to “Is NOVA good as dead?”
Got something to say?








[…] Find out more by reading the full article here! […]
This is a wake up call for that part of the Japanese service industry which operates in a manner similar to NOVA. These sales practices simply aren’t going to be tolerated any longer, and thus will no longer be proftble.
It’s a shame that customers have had to put up with this BS for so long, but it’s hurting the economy. It actually hurts us. Companies like Nova, no matter how big they are, that have grounded their business plan in the idea of coercing customers into signing up for things they don’t want at outraegous prices must be stopped.
And customers need to share more information, and complain more to the properauthorities when they get fucked over.
The correct date for NOVA instructor payment is the 15th of every month. As a former NOVA instructor who left just as they were getting hit with their 6-month contract situation, I am now even more happy that I left while the leaving is good. NOVA seemed to be hit hard this year with the death of an instructor by a private student, allegations of contract issues (and the eventual legal happenings) which is a shame because I feel for the students who are the ones getting the lesser end of the stick. I still have many friends working for NOVA in Japan but I have not heard of their payment for the month of August arriving late. Hopefully NOVA can pull up their socks and really focus on a proper plan to sew the money-flowing wound soon.
Donald, thanks for your comment. Congrats to leaving at an opportune time; hopefully many others will follow your lead.
As for the late salary payments, those were for the staff, not instructors. Their salary payment should have been made on July 27 but was delayed, apparently by varying amounts of time. Summer bonuses were also not paid.
With next Monday being the 27th again, the watch is on, and it will be interesting to see what happens.
Thanks for the update. It seems like most news agencies have forgotten about this story.
It is pretty typical of them to talk about a story for a week or two and then move on to the next issue. It is a shame because, as Donald said, it is the students and the regular teachers who are damaged the most. The upper-level management people are not in such difficult situations. I also still have friends who are employed at NOVA. The teachers are a little worried but trying to keep a positive attitde. However, a staff member I know is extremely worried. She says more and more students are asking for refunds and she forsees surviving the next 4 months a near insurmountable task. I guess we will have to wait and see.
I just have to say, I am glad I left NOVA when I did!
Whenever anybody who left Nova got out, it was the right time, I’d say. I left years ago and not a moment too soon.
Looking at the financials Ken posted on this site a couple of months back, I’d also say your staff member friend is quite right, Crazycas. I thought Ken’s early November prediction of Nova’s demise was a bit early, but he’s looking more and more right every day.
Now that instructors are feeling the pinch and leaving, let’s hope staff follows suit. One the most dispiriting sights of my life was seeing NCB staff members, unpaid for months, working overtime on the company’s last day - after they knew they were unemployed and would not be paid for their overtime - shredding documents and destroying records, thereby hurting themselves, apparently because they were still unwilling to tell their dishonest and incompetent bosses where to stick the paper shredders. I expect similar sights at Nova before long.
Garrett,
I have told my friends to start looking elsewhere but for the Staff it is extremely hard to leave. Some of them are trying to ride out the next 3-4 months and hope that everything will get sorted out. Upon, hearing her say that, I nearly choked on my drink. I have strongly encouraged to look for a new job. As I said before, we have to wait and see what the upper (fools) managemnet decide to do. Obviously they like to keep their employees and customers in the dark. So, we are not privaleged to the inner workings.
for the Staff it is extremely hard to leave
Unemployment is at 3.7% and in Tokyo there are more job offers than applicants, which means not only is it relatively easy to get a new job now, but that one is virtually ensured of getting a better job. Your friend needs to start registering with some search firms and begin exploring what other options are out there.
In terms of the company being difficult to leave…there are many firms such as NOVA that essentially bully employees into not leaving, or at least try. This is not a sign of healthy management policies or a company that your friend should want to stay at.
This company is shit and needs to die. Who needs to sign up for a long-term contract to study a lnaguage these days? It makes no sense. The value of what they sell is gone. The value of their brand is gone. They built a mini-empire on lying and cheating and they will get what’s due.
Ooooo, couldn’t have happened to a nicer bunch of bastards. I hope (specifically) that sack-of-potatoes-lookin’, shark-eyed Yvonne Brown, Flemming Lord and their ‘uppers’ end up eating sh*t out of their hats and getting drummed out of the country. They deserve worse for lying and cheating and making the ‘Japan Experience’ crappy for thousands of good-hearted people (who all paid their own way to get here only to get totally exploited) over the last several years. They’ve set the downward-spiraling tone for too long! So happy to see Karma finally catching up with them! As the dust after Nova settles, perhaps the language market in Japan will return to a fair balance of time and experience for money earned. All teachers who do private lessons: Don’t sell us all short for less than 3,000 yen per hour! Nova may have originally opened some doors, but for too long now has been a parasitic blight on the students, teachers, staff, and language market in Japan, as well as the privileged few who have been doing nothing but riding the backs of new-comers for years. Good Riddance!
[…] (from the internet) […]
I left Nova in July and am now in my home country. Nova have not paid me my last salary payment and when I spoke
to them it looks like no one who requested payment by bank transfer or cheque have been paid. And as they can get away
with not paying people now overseas it doesn’t look good.
I left Nova’s Ochanoma Ryuugaku (TV lessons) very recently. Blue tags (staff) were paid 1 1/2 weeks late in August. Somewhere around the time of my leaving, as much as half of the English team were getting ending up with empty schedules around lunchtimes and really poor attendance on weekends. I believe student numbers have picked up a little more recently due to students wanting to use all their credits (who can blame them) up but revenue isn’t great as most of these were pre-paid students. Staff have resorted to “training” instructors to fill up some of the frees they had been getting.
I feel for my friends still there but ultimately, good riddance NOVA. In my opinion the CEO deserves a lot of the blame. He had essentially no connection with the day-to-day running of at least the multimedia centre (the supposed “crown jewel” of the Nova empire). I have heard all sorts of stories about disruptive all manner of things - short-notice VIP demonstrations where members of all language groups wait around to see what language the VIP of the day wanted to choose, of people being ejected from pre-booked meeting rooms because the president just felt like walking in, … Rumors had it that he used to walk around in cowboy boots, hit on female staff all the while chastising instructors about the colour of their work pants (which is never seen by students as only the teachers torso is on camera.) I have never heard of him actually thanking anyone sincerely or fairly for any compromise they made to the company - even the Usagi (rabbit) mascot that some might argue saved them a few years back was designed by an instructor that got no credit, no revenue, no thanks. Countless people have worked their butts off in true Japanese style without thanks for that company and those people are, in my opinion, the only reason besides some lucky marketing decisions and fairy dust that the company has lasted this long.
Aside from that, my advice to anyone thinking about coming to Japan - do it. Its a great place and lots of fun. I love it. Just make sure you don’t come here with Nova and realise that English teaching is basically the equivalent to working at McDonald’s. You basically need no qualifications and as such, you WILL get treated like someone with no qualifications. Its humbling, its challenging, you will have good days and bad days, but its an experience of a lifetime and even if you come here as an English teacher, once you find your footing and “escape” the ranks of the big eikaiwa’s, you’ll only end up having more fun!
To be honest, I love working at Nova. I have lots of great memories of my time at nova to take home with me. I still work at the company. I also still haven’t been paid. I was due to be paid on the 14th September but I am still waiting.
Despite not being paid, I still go to work. I really hope the company does pull through but if it doesn’t..well, who knows? Everyone is adamant that Nova won’t last to November, maybe not but the one thing that annoys me is all the people who are telling me to get out of nova. Everyday someone has called me to tell me this and to tell me how bad the company is doing. I KNOW! Many of those calls are from people who I haven’t seen or spoke to in a long time. Most of the blog sites on the net regarding Nova are just full of nonsense. Ex Nova employees talking crap basically. Current ones too mind you.
I have worked my way up in Nova. People don’t seem to like AT’s, BT’s, AAM’s etc, well tough. The majority of the people who I found that had such negative opinions of Titled Instructors also had negative opinions about everything and just didn’t take the job seriously. Yes, alot of people think coming to Japan and teaching English as a foreign instructor is just like a summer job, a holiday..well it isn’t. By the time you have finished university, you’re all grown up (or should be). Do you honestly think that you would get away with half the crap that you do here if you were teaching back home? I had one guy come into work absolutely stinking of alcohol, hadn’t shaved, don’t think he had even slept, refused to ever speak in the staff room which created a really bad atmosphere in the branch and he was yawning constantly in class….grow up!!!!!You’re getting paid to do a job so just do it! This guy had a problem with Nova management. I don’t know why? Did he really think that was appropriate behavior and that this would go under the radar? No way.
I am glad of all the experiences I have had at Nova. I have learned so much. Especially how to deal with arrogant employees. I hope to continue to work for Nova until the very last day if it is to close soon. Every day, I accomplish things that I never thought I would in a foreign country.
Everyone is quick to bring Nova down but I just wanted to express that my friends and I have really enjoyed working at Nova. We don’t have problems with their rules. Ofcourse we have problems with not being paid but we are not as bitter as all the other people on such websites cursing and swearing about things they don’t even know.
Despite not being paid, I still go to work.
It’s hard to take anything you write seriously after reading that line. Have some respect for yourself and never work for someone who doesn’t pay you. The ball is in your court.
Memories light the corners of my eyes ,but they are nothing more than memories ,the way we were.
Kaaawaaaaiiii ,fresh soba with a dash o dashi ,real wasabi ,my hobby is to go to shopping and sleep,
love hotels, 500yen bars, para para, TMD? you know if you know , carrying the mikoshi from my local temple,
onsen ohhh hot hot onsen ,powder snow, being hagi baka sensei for my little chibies, and thats just whats jumps into me brain,
Folks worse things have happened at sea ,well maybe not I`m presuming taste but my point remains.
Peanuts and monkeys ,who had/has TOIEC CELTA ?
Yes the McEngrish school on every corner model was perhaps fated to fall but thats the way it works in a mature(sic) market
the biggest McCorp tries to KO all the others but hey weight can lack stamina.
Boom ,bust ,the guiding hand of the market Adam Smith Hyak etc.
So stop bitching bitches show some loyalty, if hentai gaijin san has any.
You are, as I was, strangers in a beautifully strange land.
Oh and cowboy hat king pin ,havent you seen Iron Chef, when a japanese man gets his mojo working in patriarcle Nipon, oh boy!
So this scebe gaijin must go cry myself to sleep in a country most japanese folks would love to live in,
I know Japanese do have odd tastes, so yawl should ring Ma and Pa for the ticke home,
I think I want to go back and and I hate foreigners, no manners you see.
PS what will Freeeed king of Tamachi go ,win the war in Iraq with his supa Texan gun slinging.
PPS that wasnt very Bhudist of me, I beg all your mercies.
PPPS I can phonetically spell Japanese and English anyway I like cos it is the interweb and Im a ex Nova pro!
Four years ago I was using the internet to search on Nova and what working conditions were like. I hardly found anything negative about the company and what accounts there were, were clearly out of date.
In recent months there has be so much on the internet of people listing accounts on their time at Nova.
It seems that Nova are lossing control and can’t keep up with the spot fires that are breaking out.
It seems a patch upon a patch is laid over a problem without actually fixing the inflexible and outdated structure. Take a look at the front off where a dozen girls work at pushing pieces of paper around and then all rush up to greet a student, or more likely, a potential student. It seems to me that there is too much effort to continue the struggle to growth without firstly making what there is more effective and efficient.
For many teachers now in the situation of wondering when their next pay cheque will arrive, welcome to Japan and what it is like to be treated like a Japanese employee. Ask some of the front office staff if they are having problems receiving their pay. I think you will find their problems started much earlier and they were sworn to say nothing.
I’ve heard new staff have been bulled into buying lesson credits and taking out large loans to do so, from a credit company that Nova has shares in, I might add. This is in an effort to meet the monthly sales target. I’ve seen front office staff being forced to buy Ginganet equipment which allows students to turn their TV into an internet webcam. A few months down the line they are asked once more to buy lesson credits without ever having the chance to use the points that already have.
If Nova does fold, then there will be several thousand feigners wondering around Japan with time still remaining on their visas. How will the Japanese authorities welcome that? I was given a hard time by immigration when I was leaving Japan with a month still remain on my visa and was given the impression that I wouldn’t be welcomed back even to as a tourist.
Brick,
It seems a patch upon a patch is laid over a problem without actually fixing the inflexible and outdated structure.
I think this paragraph is perceptive. The thing is that NOVA appears to be trying to solve its problems by cost cutting. This needs to be done, but it leaves no improvement on the revenue side. NOVA’s products and services are no longer appealing to the market. People know that they do not have to sign up for long term contracts to study a language. What has NOVA done to change their lineup of products and services? Nothing. No reform on the revenue side shows a severe lack of business acumen and inability to adjust to market realities.
As far as the government and unemployed foreigners: I don’t think this is the government’s problem to think about. Sure, it might be bad for Japan’s PR, but these are adults who made the decision to work for NOVA and have to make their own decisions about when to leave and what to do. Right now, the government is so busy trying to find a new leader that I don’t think they have time to worry about the impending bankruptcy of a small/medium size firm such as NOVA…although it will certainly attract the attention of the Ministry of Economy, Trade and Industry.
I’ve been following a lot of the news of NOVA’s financial crisis recently and I only find myself hoping it gets worse for them.
I worked in a small branch in Aoyama in Tokyo (a great area, I was very lucky to have been placed there) and while I enjoyed interacting with the students and the staff, I often found myself feeling sorry for them as I new the huge pressures on the customers to buy lessons and on the Japanese staff to sell lessons was so large. While I rarely personally felt the pure evil that is NOVA, I put this down to my particular branch and the rapport we built with each other. We used to go out all the time despite the no fraternising policy, which is really easy to get around by the way.
I can’t vouch for teachers at other branches though, especially in the huge, busy branches having to teach those out of control kids! It looked like a total nightmare! If I was placed at that those huge central schools I’d have quit VERY early. While working there in 2005/2006, there was a strange tiredness about the place. It wasn’t offering anything new and dynamic to students (despite making them pay in advance and through the nose), treated its staff very very poorly. I’d go so far even to say ’sub-human’.They also treated the teachers in a very disposable way. I consider myself lucky with my experience as it is atypical for a NOVA teacher. Under no circumstances would I ever, EVER work for NOVA again.
If you want to go to Japan, which I recommend as it is an amazing country and I loved living there, go to Japan with one of the other big schools and once you get familiar with the place, find a new place to work!
NOVA broke? Get a new job….down under.
I read on one of these boards that 5000 of the current Nova teaching staff are Australians. With this in mind, I thought I’d post on the ESL situation back home.
First thing you need to know is that there is a teacher shortage at the moment. Most schools are finding it hard to get the teachers they need. It’s been that way for a couple of years now, but the shortage has been particularly acute the last six months and will only get worse as the peak study season rolls around.
Although ESL teaching is quite different from Nova’s patented “4 bunnies in a box” approach, many of the things you picked in Japan will stand you in good stead back home. (For starters, ex NOVA-ites are usually pretty good at keeping a up conversation with low level learners and have usually picked up a fair bit of knowledge about how English works and how it can be taught).
Within Australia there are dozens of schools in each capital city: more than 100 in Sydney alone. The ESL industry in Australia is regulated by the Federal Government’s ESOS Act 2000. Aside from compulsory insurance to protect students if schools go under, schools are accredited by a body called NEAS that ensures schools, teachers and curriculum are up to scratch. You can get information/addresses on accredited schools from NEAS at www.neasaustralia.com
The reason for the teacher shortage at the moment is probably because the general job market is so strong. Schools are finding it difficult to get good teachers and some of them a resorting to poaching them off each other. Salaries are around $35,000 to $65,000 per annum (I think that’s 3,5000,000 to 6,5000,000 yen), depending on your experience and qualifications.
Speaking of which, to work at a NEAS school you will need a minimum of a Degree and a legitimate TESOL qualification (deemed to be a Certificate IV in TESOL or a University TESOL Post Grad Cert/Dip or an RSA CELTA). Once you have these things you can pick up work pretty easily. You can even get recognition for the work you did in Japan which should reduce the length and cost of getting a Cert IV TESOL through a process called RPL (recognition for prior learning). One Cert IV TESOL provider in Sydney is Greenwich College (www.greenwichcollege.com.au ) And there are others in NSW and interstate.
For jobs … you can approach schools directly (see the NEAS website) or contact job hunting sites like www.eslstaff.com who should put you in touch with jobs. General job hunting sites like mycareer.com or seek.com run ads too.
Non- Australian teachers can join in too. Pretty much all schools are happy to take native English speakers, a variety of accents is even viewed as a bonus. If you’re under 29 years old you can get working holiday visa unless you’re from USA (coz the US govt doesn’t like WH visas) or New Zealand (coz Bondi is a New Zealand suburb, so our Kiwi brethren can live here anytime they like). You can get info from http://www.immi.gov.au/media/fact-sheets/49whm.htm
The teaching itself is pretty different from NOVA; students study for 20- 25 hours per week in mixed nationality classes of up to 18 students using a set curriculum and text books that werent published in the cold war. Most classes run five days a week from 9am to 3pm with an hour off for breaks. Decent employers usually pay for lesson preparation time (using a daily rate).
So why am I putting all of this down? Well, I used to work in Japan (including 12 months at NOVA) and I can appreciate the stressful feeling of working in a company that’s on the ropes. However the main reason is that I am now the director of an ELICOS College in Sydney and am finding it hard to get teachers – so if you’re thinking of calling it quits at NOVA, then get in touch! (blueterrace-AT-hotmail-DOT-com)
PS For stat junkies, you can see the size of the ESL market in Australia by looking at the government statistics http://aei.dest.gov.au/AEI/MIP/Statistics/Default.htm Students numbers are up in every market except Japan which experienced a 5% decrease (another sign the English bubble has broken??) . Another good site is English Australia http://www.elicos.edu.au
This is an EX Nova employee. I stopped working for Nova on the 15th of July and have not been
paid to date. LOUISE what luck do you think the ex employees have with an international Lawyer?
I don’t think that we will see that paycheck at all. The company is too busy paying its current
employees and paying off other debts. We are the last on the list to be paid as I see it. In
other words we were SLAVES. This is a warning to those that are thinking of quiting. DO NOT
rely on that last paycheck. Contact your embasy if you are leaving. For those that stay,
Good Luck and hopefully better days are ahead.
I did enjoy teaching and I did work with great people, but the corporate structure of the
company is extremely exploitive. Which is business, but there are better businesses to
work for. To think NOVA is the end all be all and greatest company to work for you are fooling
yourself. Take a stand and have some guts, don’t let the corporate world control your destiny,
In fact its the other way around, take the bull “NOVA” by the balls and get your well deserved
Pay.
This is for Alana (and those in her situation).
I hear and understand your point of view. I’ve worked at NOVA for 5 years and am still here (I am currently involved in a job search though, I’m not staying any longer). I loved every minute of it, except for when I had to deal with the folks down south. For 5 years I never had a problem getting paid. Now this. Lies and deceit around every corner. I’ve never actually met this CEO guy. I don’t really know he exists, but I’ll go on other peoples’ accounts.
It does pain me to have to leave but as I look at myself in the mirror I cannot say I respect myself and stay with such a company. In this society people get paid for work unless you volunteer, and according to my contract I’m no volunteer. I’ve met some great people, we all have. I have friends that I will keep in touch with for life. I met them at NOVA. Still, you have to look at reality. The management of this company are liers, and they have no real vision for the company. They have betrayed your trust and are preying on people like you. I have little confidence that NOVA will pay the teachers and staff backpay. As of September 27th I hadn’t been paid for August. I’ve lost hope in that regard. So sad, as I do believe NOVA could have been something really great and revolutionary (if managed properly).
That said, I have learned many valuable things that I can use to transition into another job. Alana, if you have valued your time at NOVA and used your time constructively, instead of wasting it like the people you mentioned then get out now. My friends have told me the same thing so I know your frustration with hearing that. Look at the skills you may have gained, see where you have increased your competencies, and make a move to somewhere you will be appreciated on all levels, and where there is true security.
The thing for me is the students. I really enjoy teaching them (yes you can actually get some teaching done at NOVA despite what others may think). I’ve witnessed improved abilities to speak English and feel comfortable communicating with foreigners. I’ve had many students thank me when they come back from abroad saying they had a great time because they were able to feel comfortable communicating with foreigners. That is why I keep going to work. The students believe in me, so I can’t let them down.
Still, when push comes to shove I have to weigh the fact that NOVA is a damaged company that is misguided and fails to take new perspectives from others. I bet if the CEO had asked for some ideas from the 7,000 employees he “controls” I bet he could have put together a real plan of attack that would have, in much better condition, gotten him and this company through these times. That is the problem with the leadership of this company. It doesn’t know how to cultivate and encourage vision from within. Sahashi and his cronies cannot see true talent and foster it. If you go against his will you are done. That is no way to run a company. The kicker is that most people in this company are happy to just go to work and collect a paycheck. Not everyone will stand up and propose drastic vision changing ideas. The ones that would are few, and thus should be sought out and nurtured. This is where NOVA fails.
Alana (and those like her) I don’t want to dissuade you from your path because I do believe it is a noble one, but see what is happening around you. And ask yourself if this isn’t time for a change?
Peace
Worked for NOVA from 1990 to 1994. Surprised that its lasted this long. Was obvious with its attitudes to its staff and its ‘customers’ that it would come to grief sometime.
Feel for almost everyone who is about to get screwed. There are a few exceptions. For those like Alana who have been brainwashed as to their own importance and the greatness of the ‘company’, I have no sympathy. Remeber Aum Shinrikyo. The names will have changed but that attitude has always been there and receives no respect from the rank and file.
As to NOVA trading its way out of its present predicament - forget it. The most valuable attribute to a company is its good reputation, something it no longer has.
At least I can say I had the sense to see what was going on more than a year ago. I left Nova with my pay intact for a more ’secure’ and reasonable teaching position. When people from ‘back home’ would ask for advice on coming to Japan for the first time to teach I’d let them know that most of the foreign staff at Nova were great, but the damn company itself had something going wrong. We could all see it…the two branches I worked between lost 9 teachers in three weeks, they were replaced by 2 teachers 6 months later. It was a scary place to be more than a year ago, I pity the teachers I know who are still there and are trying to get the hell home with no pay.
Paul, I think you might have been a bit hard on Alana.
Alana, my first job in Japan was with Nova and I largely agree with you - it is a job, people should do the best they can do at it if they’re going to take the money.
I, myself, am of two minds about all the crap being spewed out over Nova. One on hand, it’s to be expected that people who have been screwed over and don’t really understand what’s going on (not that I do) are going to get angry and vent. It is also to be expected that it will catch on and become the thing to do. A lot of their complaints are also completely valid. Likewise, Nova has long served as a way for former or non-Nova employees to belittle others and feel better about themselves (even though most who do so are in jobs no more impressive or skilled.)
On the other hand, while frustrated with the management of the company the whole time I worked there, I saw that a lot of my colleagues seemed to turn what should have been ordinary situations or might have been honest misunderstandings into adversarial situations, especially with regard to the Japanese staff and higher level management.
Because Nova is, for most of its employees, the first job they’ve had in Japan, it is bound to be tied up in such duality. I still see that today. A few of my oldest friends in Tokyo are people I first met at Nova, although most of us left so long ago that I often forget it. And I think it’s possible that, had Nova truly been horrible, I would not be in Japan today. It took at least a few months for me to move beyond Nova and start to see, experience, and enjoy Japan outside of the company. Again, had it been truly awful or had I been so badly mistreated by the company,I wouldn’t have stayed on long enough to get used to things and think about working elsewhere in Japan.
Tomorrow I’m paying for my air ticket to Japan to work for Nova and will fly there in less than two weeks. I’ve just read what feels like hundreds of letters from Nova past and present staff all complaining (legitimately) about how disgraceful the company is. I’ve kept in touch with the news in Japan for the past six months so I’m aware of the situation I’m going into. I’ve saved up money to keep myself afloat. The reason I’m doing this is because teaching English in Japan has become more competitive (at least I feel). I’ve applied for many other jobs- I was treated badly by AEON and GABA recruitment and other companies told me, look it is too competitive, we can’t offer you anything. So in the end, despite Nova’s bankruptacy, they are my ticket/Visa to Japan and my only way of getting into the country with a one-year Visa to learn the Japanese language and culture. I’m prepared (at least I’ve told myself) not to get paid and also to deal with bad corporate work politics. I can’t imagine what you all think of this guy walking onto a ship that has already half sunk.
I can’t imagine what you all think of this guy walking onto a ship that has already half sunk.
If you have enough cash and know what you want to do, I don’t see what would stop you.
Well, lets see, I pretty much quit at the end of my Working Holiday visa, but it seems it was a great time. My last month with Nova was May.
For my 2 cents, it seems the only real problem with Nova is the management.
I worked in Nara, and had a few problems with the head management of the areas, but the Manager would not hear anything of it. They never worked to help the teachers and just over all took a very bad attitude toward the teachers. I’m glad all this is happening, however I feel sorry for all the cool teachers who went to teach to have a good time. Good luck to you all. There are other options out there like ECC and AEON.
Good luck to you all.
As an ex NOVA teacher I am sorry to see it go. And I feel very sorry forthe front line staff and students who are really the ones to lose! NOVA was a great way to get too Japan and while I moved on after one year it was a great year in so many ways! And as you can see from my last name (Takahashi) I brought Japan home with me!
I just recently heard about the news concerning NOVA. I do not pay attention to other English schools and how they do
business. I do know that the small school I am working for has been flooded with NOVA teachers asking for jobs and we have tneen
conducting interviews for our new school that is expanding. It is a shame that a lot of teachers are having
to look for new jobs due to poor management of such a large company.
In general, everything said is basically correct.
I am on of those “old timers” at NOVA and have seen alot of the rules twisted and turned.
As far as schools go, the shift swaps and vacation scheduling are key to staying at NOVA.
it is quite flexible and not too troublesome.
I have to say that in the late 90’s 5000-12000 pay increases were not unheard of, but now it is more like 1500-5000. Blame the economy, they say.
NOVA had a goal of 1000 schools open which was one of the nails in the coffin. They are at about 900 and the closing has begun. Last week, through the grapevine came news of Akihabara closing the end of the month(Sept). Asking the staff, she checked and low and behold…. no transfers accepted to that one. Sorry guys, look at a transfer to new locals.
Staff have the rumor that all kids only schools are on the chopping block???
One instructor was notified that they will cut his lease the end of this month and he and his flatmates will be shipped to other recommendations.
All the newly opened schools shot NOVA in the jugular when METI set all the restrictions and paybacks.
As for only 700 more teachers coming into Japan to fill the empty spots, once NOVA has down sized a bit and regrouped the remaining instructors to those schools at pre-2000 counts, 700 should be sufficient (I hope).
All the teachers that jump ship may be a good thing for NOVA. Less to pay-out during the down sizing.
There is hope for them, if they play their cards. Though it is still bull-sh*t in my opinion.
The lies passed down from AAM upward are atrocious at the least. I have given them till next year in Feb to turn around. If not…..
It’s kind of fun being on a sinking ship, you can watch the rats devour eachother and get a good feel of the corporation firsthand. If you have the savings and back-up plan to see you through their woes.
February? We’re looking at a matter of weeks here.
Arthur Andersen - was one of the Big Five accounting firms in the US - with over 100 000 employees until it was caught up as the auditor for Enron. It subsequently lost its license to practice and went out of business in 2002. The point is that once your reputation is shot you have nothing. Who in their right mind would buy lessons from NOVA now. No cash in, no cash out, game over.
Who in their right mind would buy lessons from NOVA now.
Paul, fair point. In any country, however, many consumers are not what we would call in their right minds. Check this one:
http://search.japantimes.co.jp/cgi-bin/rc20070930a3.html
I have been a teacher at Nova for some years now. And I am shocked by the development of the last months. I understand and share the frustration of many contributors. I agree the company leadership obviously has made many mistakes. Maybe the greatest one of which was that the leaders did not fully realize what it means to run a company, whose most important assets are people. There is basically nothing else: Lessons are sold to customers, there is the staff and there are the teachers. That’s all. No buildings, machines, physical products, or whatever. And if you are so much depending on people, the only way to survive and flourish on the long run is to cooperate. And it’s there where the company has failed. During all these years, I have hardly ever had the impression that my opinion or views were important. I fully agree with Anthony Malcolm, when he writes: “That is the problem with the leadership of this company. It doesn’t know how to cultivate and encourage vision from within.” Sahashi has never tried to listen to us as teachers during these times and create a kind of solidarity between us and the company. In these difficult times, this attitude now proves a disaster. Some of the results can be seen in many of the comments above. Many teachers have left the company, are recommending that others do the same and are also recommending that students should give back their point as soon as they can. And some even seem happy that the company goes down. This attitude is understandable, but of course it accelerates the downward spiral.
It is true, the leadership has made some grave mistakes, and now they are paying the bill. But there is also another side to it. After having talked with so many students, I must agree with Mr. Maeda (see the link given by Ken Worsley): Nova’s concept is basically very good. The students get a lot: Flexible lesson times, voice room, possibility to take lessons at home by using the Ginga-net facility, literature and audiovisual materials, organized staying with families abroad, etc.. And all this at reasonable rates. Please show me another language school which offers the same. Mr. Maede is not out of his right mind, as Ken suggests.
And for teachers like me, Nova has been a great start for my life in Japan.
It is so easy to give Nova a beating right now. But let’s also look at the fact that it would actually be a great pity for teachers, students and Japanese staff alike, if this company went bankrupt. And here comes the comment by Alana. I have to agree with much of it. The times now calls for a responsible attitude. If the leaders don’t know what to do, at least we as teachers should do our best to save Nova. For example, I believe, we should not talk negatively about the company in front of students, as this would only create more panicking and make students return their points, thereby accelerating the downward movement. Also in front of other colleagues and the Japanese staff we should have a balanced attitude. I have heard teachers say: If I am not payed, I will stay at home. Or: Leave the sinking ship as soon as you can. Or: It doesn’t really matter if you write your files, nothing matters any more. Or, to students: Maybe this was the last time we have met, who knows if Nova exists last week.
How on earth can the company ever recover and change, if we have this kind of attitude? It will create a self fulfilling prophecy. The company has a bad time, maybe solely of their own fault. But here again, I have to agree with Alana. Even if I don’t get paid, I will go on working for some time. As long as there is hope, we should not give up easily, in the interest of all the people involved in Nova.
I am not a titled instructor, even decided against becoming one, when it was offered to me, and I have been critical of many things at Nova for a long time. But now is not the time to join in the (sometimes even sadistic?) beating, but it is the time to do our best to save as much as can be.
One last thing. I strongly suspect that there is more to the game than just some errors Nova’s leadership have committed. The people of the ministry must have know, what could happen, when they punished Nova by restricting their business for six months. I just cannot believe that the reason for this punishment was only the wish to do justice. It could well that there have been powerful people in the background, who saw a good chance to take out a major player in the school business for one reason or another.
Nova needs a new leadership, new concepts and ideas, but it does not deserve to disappear altogether.
I am sorry, “sadistic” was not the right word. I wanted to say something like “pleasurable”. Would you please correct this?
One thing I forgot to say. Apart from my criticism, I like working at Nova. They sponsor my visa, my salary is paid on time (so far), the working atmosphere is ok, at least not worse than in other employments I have had, and I really like my students. Let’s hope things get better again.
wwwwwwwwwwwwwwow!!
i had 2 look thru MANY LINKS
to find any–all info on the NOVA situation!!
i seriously never thought it was this bad!!
i left TOKYO in november
have been back here in the SAN FRANCISCO BAY AREA ever since
and have tried R E P E A T E D L Y to gain employment with NOVA
ESPECIALLY AFTER BEING TOLD THEY WERE “”ALWAYS HIRING”"
never a response from anyone associated with the company!!
finally thru TOO MUCH WORD OF MOUTH
i seem to understand they are a VERY SHADY COMPANY!!
do they still hire?
will they be around when i “”POSSIBLY”" return in a few weeks?
are they still hiring?
do they sponsor visa’s still?
ANY OTHER LEGIT COMPANIES
HIRING AT THIS MOMENT?
Nova is basically dead. Many reasons to not work for them. 1. they’re shady. 2. they’re not
paying wages, 3. they’ll probably be closed down by the end of this month by either admitting
or being forced to declare bank ruptcy.
Don’t go there
I remember the introduction of the Diplomat LMP taking over from those crap out of date text that Nova stated with.
The transition over wasn’t easy but the management didn’t help by putting all the emphasis back on to the instructors if things were not going right.
Instructors wanted a little more direction about where they should be going with the lessons and were told to just follow the lesson plans and don’t deviate from the plan one step. Following this direction there was just one fly in the ointment. The students didn’t follow the lesson plan.
I had one of my lessons watched by the Swede himself when the management started getting wind that there was something not so sweet with their plan.
After the lesson I tried talking with him about the lessons and my approach, so forth and such, after all he was watching my lesson, the respectful thing to do would be to allow me to bring up concerns I felt about the lesson he observed.
I got the general hint that I was a hoe and after he’d wipe his dick and tossed the money down, I should just shut the hell up.
So that’s Nova’s general respect for their staff on the front line. Their the pimps, and we’z the hoes.
At one team meeting the AAM asked the question, “These LMP’s wow, so how’s it all going?” All very enthusiastic. Some of the brave, some of the dumb, some of the don’t give a shit’s but there were some who had real concerns spoke up.
I could feel the ph of the atmosphere change as it got sour. Mr AAM dropped his enthusiastic smile.
Well if you’re not prepared to hear the answer, then don’t ask the question, But once again, the issue was turned around and the sad sack teacher was the problem.
The gossip at the time was that Nova was heading towards the iceberg and that there was money coming from somewhere, government what ever, some prop up. The introduction of the new text books was a condition of this money fairy to improve the state of Nova’s condition.
The new text worked for a while but really I think I saw the same faces walk in to the cubical. Those people who had forked out for and expensive out of date text book, to then have to pay for another new text book.
[…] Is NOVA good as dead? at Japan Economy News & Blog - Bank of Japan, Ministry of Finance, Ministry of Trade, Economy and Industry […]
Hey Alana, whats your opinion of ‘great’ company now?
[…] Is NOVA good as dead? at Japan Economy News & Blog - Japan’s busines.. […]
I taught at Nova (and various other schools) from 1991-2001. After two years there I quit and went to Japanese school. But 2 months into a 1-year program I got sick and had to drop out. At that point I was an unemployed unenrolled foreign person. After two months of job hunting and trying to get treatment, nothing worked and I came back to the States. Now I’m ready to go out again. But there’s no way I’d ever teach at an eikaiwa again.
As one type of teaching, it’s ok for a year, maybe two max. After that, it’s a dead end. Add to that various nightmare co-workers (that my Japanese managers were actually afraid of), and it’s no suprise that Nova’s going out of business. I always felt bad for many of the students signing up for lessons. Who do I trust, who’s riping me off, etc? Privately we would sometimes talk in Japanese and I would try to be honest with them in their study. And I’m happy to say that my success rate was pretty good.
If people want the eikaiwa system to survive I have a few suggestions:
First, make sure all foreign teachers have at least an intermediate level Japanese ability.
Stop the coporate surveillance of teachers after hours. Nova is notorious for firing teachers on the spot for just talking to students. How often does that happen in other countries?
Seperate the sales section from the teaching section. When the sales staff pitches prospective students, how many of them are qualified teachers? All sales staff should have actual teaching experience so they can have credibility. Time and time again I had prospective students ask me in Japanese, don’t give me any sales hype. Tell me what you REALLY think about my abilty. And politely in Japanese I would.
And finally, management needs to back up their foreign staff better (from the top down). In many old schools there were nightmare teachers (both foreign and Japanese) along with lousy management. People lied to me, people laughed at me to my face in Japanese (when they knew I understood them). People didn’t help me with getting national insurance and other tough situtations. Fortunately I decided early on I wanted to be more than a second-class foreign guy teacher. Because that’s the reality of it. If you want a career in Japan (teaching or something else), take the time to do an intensive course beforehand. Even if you live with a Japanese parter, the live-in 24/7 translator/interpreter routine doesn’t work. You’ll feel better about yourself and prospective bosses and others will too. Otherwise in many ways you’re an underclass. Do you really want to be a second class minimm wage person all your life? I speak from ten years of experience. Which will be coming out in my future bestseller :).
If anybody wants more information, advice, etc., feel free to contact me.