Following the bursting of the Japanese “bubble economy” at the end of the 1980s, Japan’s business environment in the early years of the twenty-first century is facing major challenges. After more than a decade of fragile consumer confidence and deflation, there is a continuing debate about the nature and extent of reform needed within the world of commerce (where restrictive practices and cartels seriously inhibit domestic competition) and in the employment culture of Japanese industry generally (in a highly competitive global economy can there continue to be “jobs for life”?). Japan also continues to face the huge task of transforming an archaic and intransigent civil service that is inhibiting reforms.
Among the matters requiring urgent attention are a monumental government deficit, a mountain of nonperforming loans that continues to rise, and a continuing decline of the manufacturing, employment, and price indices. It is a disturbing reality for the world’s third-largest economy.
Yet, despite the gloom, as noted in the Introduction, albeit gradually, potentially significant changes are gradually taking place that could have a positive outcome in the medium and longer term, particularly within the functioning of the keiretsu—the huge conglomerates, including the major banks, that dominate the Japanese economy. These include various forms of collaboration and share disposal that would have been unheard of in the past. For example, out of the original eight car manufacturers in Japan, only three today remain wholly owned. Even more significantly, foreign direct investment in Japan rose from $3.2 billion in 1997 to $24.5 billion in 2008.
However, in acknowledging Japan’s current socio-economic difficulties, it is easy to be persuaded, as some commentators are, that the country is in terminal decline. This, of course, makes no sense in the broader context of Japan’s ongoing economic, industrial, and technological development: Japan is still a technological giant whose companies are at the forefront of innovation and application, including space; Japan’s popular culture and entertainment industries expressed, for example, in anime, fashion, films, manga, pop music, and video games are hugely popular internationally. Japanese “high end” manufactures, from cars to camcorders, are still the products of choice around the world.
Furthermore, despite its language difficulties, more than ever Japan now engages actively in international affairs and contributes significantly to third-world aid programs. It has also emerged as a important contributor to Overseas Development Aid for environmental protection to China and other developing countries, and has become a leading player in key global environmental policy matters, not least climate change. Importantly, too, under Kan Naoto, the new DPJ government offers a potentially viable alternative to the old LDP that should encourage a two-party democracy for the first time. Japan, it could be said, is in another period of transition: we should all take note. Against this economic and political backdrop, let us consider the nature of Japan’s business culture.
Because of the importance to the Japanese of relationships—it is always “who you know,” and within what circle, not “what you know”—an introduction by a go-between who knows both parties to a new business contact is a fundamental requirement and ensures the best starting point.
Punctuality is seen as an expression of good manners; thus, to arrive at a meeting late is to lose face and even to cause a degree of resentment, as well as undermine your perceived status. Furthermore, there is nothing to be gained in offering excuses, especially about traffic conditions, because everybody has to deal with that. (Even if you are a first-time visitor, you will be expected to know these things.) Profuse apologies and a humble demeanor are more appropriate.
Dress is also important. Japan has not yet adopted the tie-free, casual environment increasingly common in the USA and UK, and is unlikely to do so; smartness continues to matter. Flashy colors are also best avoided, given that the typical Japanese suit is dark blue with white shirt and bland tie. The Japanese word for suit is sebiro, which comes from “Savile Row”—the heartland of London’s “gentleman” tailors. Allied with all of this is good deportment. If your bearing is too relaxed or laid back, it might be interpreted as lack of respect or even “crooked spirit.”
Having said that, there was a brief flirtation with business fashion under prime minister Junichiro Koizumi (2001–6), well known for his flamboyant suits and ties, who late in his premiership introduced what was called “Cool Biz.” Following the government’s decision to reduce carbon emissions from air conditioners during the summer months by setting them at 82.4°F (28°C), he recommended a “no tie and jacket” campaign to compensate for higher office temperatures. The “Cool Biz” campaign never really took off (actually causing much confusion) and with few exceptions it soon became “business [dress] as usual.” How much office workers’ efficiency, however, suffers as a result of the higher temperatures has not been measured.
Also relevant in this context is the use of fragrances and deodorants. Body odor and cleanliness as we have seen is a sensitive issue. The Japanese generally do not use much in the way of perfumes, colognes, and aftershaves, except discreetly. High-powered fragrances, therefore, that leave “a trail” are best avoided, certainly during the business day. Equally, body piercing and tattoos are best kept discreetly hidden.
The Japanese value group solidarity enormously, so be ready to be met on arrival and seen off on departure.* You may well witness “sending off” gatherings at railway stations and airports, which can be extremely moving events. In the case of the departure of a senior manager to a new post elsewhere, the gathering may well conclude with a roar of “banzai!” (“hip, hip, hooray!”) three times as a mark of affection and good luck.
When introduced, Japanese businessmen will first exchange business cards (meishi). Make sure you have your own right from the start of your visit, ideally with a translation in Japanese on the reverse. Check with your airline about this service well before departure; if the timing just isn’t right, then arrange for the cards to be printed by your hotel as soon as you have checked in. Remember, without a business card in Japan you don’t exist!
English is the accepted lingua franca in Japan, although, of course, there are skilled speakers in other European and world languages, depending on a particular company’s business activities and dealings. Many of the people you are likely to meet in a Japanese business context will have been specially chosen to interact with foreigners and for their knowledge of English. There will be others at the meeting, in more senior positions, who may only communicate to their interlocutor in Japanese, but who may well understand English far better than they can speak it.
EXCHANGING BUSINESS CARDS (MEISHI)
• After shaking hands (most probably) or bowing (or occasionally both), hand over your business card with a slight bow, receiving one in return from your new acquaintance. (Visitors generally hand over their business card first.) Make sure that you present your card the right way up so that it can be read immediately.
• Your new acquaintance may hiss through his teeth while studying your card. This show that you are an important person. Remember, your meishi is your “face” and thus an extremely personal item.
• Take your time to study the card received, and if it is in Japanese only, don’t be embarrassed to ask for a translation of it.
• The Japanese always show the family name first, followed by the given or personal name. It is rare for Japanese to use given names among strangers, so get used to identifying the family name first and then add the word -san; thus Morita-san. (You will be referred to as Smith-san, san being the closest equivalent to Mr., Mrs., or Ms.)
• Once seated, it is good manners to keep the card in view on the table, or on the armrest of your chair.
• Finally, take the trouble to pocket it (in your wallet or meishi card holder) with some indication that it is of value to you.
• At the end of the day, add key words to the cards you have received so that you can readily identify who was who (including particulars of job function) at a future date, but don’t ever write on the card in front of the person, and don’t put meishi in your shirt or rear-trouser pocket.
• Special meishi albums are available at stationery stores; these will prove an invaluable source of reference in the future.
REMEMBER: In Japan, the business card is a key link in the “connections chain”; don’t lose it, and make sure that you understand the status of the person who gave it to you (ask others if necessary). There will be many occasions when you will need to show your cards to others.
Do not be surprised if you are outnumbered. In large companies, you will see a correlation between age and seniority. This is because of the employment system and Japanese ideas about the importance of age. Some foreign companies make the mistake of sending young managers to important meetings. This is not appreciated.
Be prepared for lengthy translations of your comments, and for the side-conferences among the Japanese present that may follow. It is important not to be intimidated by this procedure, but to remain relaxed and focused. Although you may not speak the language, you can demonstrate by your body language that you are still an active participant.
Speak slowly and as clearly as possible, but not too slowly and without raising your voice, which might cause offense. But beware always that many misunderstandings are possible, even in an apparently free-flowing exchange—some arising because of nuances of language, different perceptions, and variables in body language.
When ushered into a room, sit at the place indicated by your host (you will invariably be directed where to sit), since the seat of honor and other positions in decreasing order of importance are usually predetermined; this is particularly the case in the traditional Japanese house.
The Japanese generally prefer discussing business in the hotel’s reception area and not in your room. If it is not feasible to do so, suggest moving to a coffee shop or bar. The Japanese seem to accept that they may be overhead by strangers in such places—much in the same way that they “hear” but don’t “listen” or “look” but don’t “see.”
Visitors will quickly become aware of the importance of routine communication in Japan, both on a micro and macro level. Within departments there are constant meetings, and with those out of the office constant communications. And for those separated from their reference group—on domestic, or especially, international assignments—the Japanese tend to telephone or write back to base frequently, even if there is little news. This “umbilical link” is seen as fundamental to the maintenance of positive, ongoing smooth relations. On a macro level, there is sometimes a feeling that Japan is communicating with itself twenty-four hours a day; it is no surprise, therefore, that Japan rapidly became one of the world’s top cell-phone users in the late 1990s.
There is no harm, therefore, in copying this custom with your Japanese group, especially after you return home. Photos, cards at Christmas and/or New Year, are reminders that you still care.
INSIGHTS INTO “THE BOW”
It has been said that the Japanese bow represents the most readily identifiable form of conscious nonverbal communication. Bowing communicates respect by avoiding eye contact (unlike Westerners who seek it). In bowing, you are communicating at a profound level.
Bowing communicates a range of different nonverbal messages, such as initial greetings, farewells, gratitude, acknowledgment, apology, degree of familiarity, comparative social or corporate rank, and gender. These messages are refined by the depth of the bow, the position of the hands (held in front or by the side), the frequency of the bow, and who initiates it.
Although there have been some high-profile appointments (and disappointments) of women in business and government, generally speaking women continue to be discriminated against in the Japanese workplace. Indeed, the male-orientated imperative within Japanese society is such that it is difficult to see this situation changing, except very gradually over time.
Western businesswomen therefore can expect to find few, if any, counterparts in Japan, and may themselves be viewed as an oddity in the overwhelmingly male-dominated surroundings of business and after-hours entertainment.
As with her Western male colleagues, a Western businesswoman during her initial stay is likely to be treated as a high-status gaijin okyakyu-sama (honorable foreign guest) first and foremost; subsequently, she may well find herself being discriminated against because of her sex, and not always that subtly; the final indignity can sometimes result in more hostile behavior by Japanese male colleagues.
It is unlikely, however, even in the role of honorable guest, that she would be invited to after-hours drinking sessions, and especially not to the more intimate parties involving female entertainers that important visitors and clients might be treated to after the evening’s formal party draws to a close.
Nevertheless, it is a reassuring fact that the molestation of women who venture out alone in Japan is a rare event. By contrast, during parties, Japanese males, later pleading drunkenness (see this page), may sometimes become over-amorous, or start fondling or pinching Western women. If the woman concerned objects promptly, this should ideally lead to apologies and no further contact.
Since the first edition of this book in 2003, and despite record numbers entering the workforce, very little has changed for women in business, including representation in the boardroom. Molestation of women alone continues to be rare, whereas Japan Railways has introduced some women-only carriages on the underground during the rush-hours to help limit the extent of molestation by men on trains (chikan), which remains a big problem.
Since Japanese wives are generally excluded when their husbands entertain on business, Western wives are rarely invited either (see this page). However, the “internationalization” of Japan’s business environment is gradually bringing about carefully managed formal occasions to which foreign wives are invited. Nevertheless, if they do go, they should not expect to be engaged in scintillating conversation by their usually tongue-tied male Japanese hosts. Nor are they likely (except at, say, Embassy functions) to meet the hosts’ wives.
Dress for women, as for the men, is typically conservative, consisting of dark suits or dresses (tights are always worn). Given the lower average height of Japanese women, avoid high heels and go for “sensible” shoes. Formality is expected at all times and thus overfamiliarity, terms of endearment, and diminutives should be avoided always. Modest make-up and discreet perfume are also recommended.
To encourage harmony, Japanese conversation mostly allows the participants to agree. Consequently, contentious issues are avoided. Refusals, if necessary, tend to be indirect, and here is where it can be especially difficult for new arrivals—reading the convoluted hesitations, drawing of breath, head movements, and phrases such as “frankly speaking” (widely used) and “it may be difficult.” The word “no” in Japenese (ii-e) sounds harsh and is rarely used. Instead, get used to (and use) “well, maybe” (kamo shiremasen), or apply the art of pausing. The pause is often equivalent to “no”—just as a non-reply mostly means “no.” Non-reply to correspondence, faxes, and e-mails is one of the most difficult aspects of Japanese behavior for Westerners to accommodate: it becomes especially difficult to accept when it involves someone you believe you know well or reasonably well. Persisting beyond a certain point is futile and it is best to move on. Equally, don’t automatically take “yes” for an answer in the Western sense.
Also, be aware that increasing numbers of Japanese are conversant with Western character traits and expectations—in particular the “direct approach”—and may lead you to believe that business will be done on that basis. However, this is unlikely to be the case, and you should always remind yourself that, pleasing though it is to be on a positive “one-to-one” with a Japanese colleague or business partner, the fact remains that this is likely to be purely an intellectual accommodation of Western behavior. Conversely, however linguistically accomplished you may be, and however well you may “know” Japan, you will always be perceived as an outsider for the simple reason that you are not Japanese.
The Sound of Silence
The Japanese love silence and actually “communicate” with it. Westerners tend to be afraid of silence and instinctively seek to fill it. Thus, “silence pauses” at meetings, or even in informal conversations, should be respected for what they are meant to be—pauses for thought and reflection, or an opportunity to move to a new topic in a gracious way.
Above all, “silent pauses” should never be broken with a joke or funny story!
It is also worth remembering that sometimes communication with a Japanese you have known breaks down and “silence” ensues—for no apparent reason. It may be that the person concerned does not know how to respond to your last communication, or it may be that, deep down, it is just too much effort. Further reminders or follow-ups are usually just a waste of time and it is better to move on.
Equally, it is vitally important to understand the meaning of the word “yes” (hai) in Japanese. For most of the time, hai is interjected as a supportive listening word and simply means “Yes, I hear you.” Sometimes, for emphatic acknowledgment, hai, hai is used. It would be highly unlikely, however, for hai to be used in response to the question: “So, we are agreed on the deal, then?” unless it was followed up with a clear enunciation of what the deal consisted of.
As we have seen, the Japanese greatly prize harmony (wa) and instinctively seek consensus, with the team achieving things, rather than any one individual within it. Thus, consensus discussion (nemawashi) and seeking agreement (ringi-sho) are routine processes at all levels of society, but above all, of course, in business and politics. Reaching corporate agreement, therefore, on any proposal almost certainly takes far longer than the Western world is used to, because other colleagues and departments must be consulted also. This may, of course, be different in smaller, owner-controlled companies.
However, it has often been noted that although reaching a decision in Japan may take a long time, the implementation can be surprisingly quick. Typically, therefore, a number of levels of Japanese management and skill competencies will be present at a meeting, or on a fact-finding initial visit, precisely because all the levels involved in the implementation of any decision to proceed will have to be involved in the agreement (ringi-sho) process.
There are obvious drawbacks in this approach for Japan, especially in the international arena (even with backroom “back-up”!) when votes are required on the day regarding a particular motion—whether it be after a debate in the United Nations or at an academic conference.
A “Communications” Story
The new marketing executive for East Asia wanted feedback from her Japanese agent, so she rang him. “Ho, Koji; how are things going?” she greeted him. Koji replied haltingly that things were fine. She asked him what he thought of the new product line. Koji didn’t reply. There was a long pause. Embarrassed by the silence, she asked him again what his opinion was. Koji reluctantly asked a question about product specifications. The marketing executive pressed him. “I’d really like to know what you think.” Apologetically and reluctantly, Koji mentioned a criticism of the product that he had heard. The marketing executive ended the conversation with the dissatisfied feeling that she had handled it all wrongly.
On the whole, as we have seen, the Japanese prefer to volunteer collective opinions after discussion, not individual opinions, and certainly not to strangers on the phone. Feedback is considered, collectively reviewed, and is, above all, consensual.
By definition, therefore, feedback is rarely instant and individual. The Japanese agent probably felt a keen loss of face—both for himself by his embarrassment, and for her for putting him in that situation.
Had the marketing executive been more experienced she might have:
(1) been a little more respectful and deliberate, while remaining friendly.
(2) not demanded instant opinions but signaled the importance of getting some feedback on the product’s reception in Japan.
(3) suggested that when Koji-san had had the opportunity to examine the product in greater detail she would value his team’s opinion.
She would have had an answer within a very few days!
• Always use “we” not “I.” You will often hear the phrase ware ware nihonjin (“we Japanese”). Japan is not an “I” culture, and it is best to recognize that from the outset.
• Always avoid situations where there could be loss of face and consequent embarrassment.
• Don’t reject anything out of hand. Give yourself time to think about the proposal and use phrases such as “I’ll study that,” or “I’ll look forward to discussing it further.”
• Don’t confront people or attempt to force decisions they cannot make; and don’t get angry (it shows a profound lack of self-respect and you lose face).
• Always choose the indirect approach whenever possible because the Japanese are most comfortable with this.
• The Japanese are an intensely visual people; so have diagrams to hand out whenever you think it could be helpful.
• Restrained body language will always be preferred to excited gesticulation, touching (don’t touch!—except “after hours”), and noisy outbursts.
• Don’t try to make routine eye contact; like so much else in Japan the direct approach is avoided.
• Don’t expect to return to the office the morning after a good night out and relive the great time you all had. This is simply not done—and for the compartmentally driven Japanese mind, anything that happens “after six” doesn’t exist! In any event, for the Japanese, such fun times are often best forgotten!
• Don’t assume that because you are a foreigner “company regulations” only apply to the Japanese staff; although allowances will be made, your “esteemed bank account” will be greatly augmented in proportion to the efforts at integration you are seen to be making. This also applies to learning the language (see Chapter 10).
• In your relations with expatriate Japanese, don’t assume that the quality of your perceived friendship will carry through once the person concerned returns to Japan. In the ordinary course of things, the Japanese person has to reorientate him/herself as well as reintegrate into Japanese society, which can sometimes be very difficult. Of course, you may want to make every effort possible to keep the friendship going through correspondence, e-mail, and so on. But if it doesn’t work out, you will know why.
* Because of the considerable time involved in getting to and from Narita Airport, you could always suggest a rendezvous at the Tokyo Station Narita Express platform.