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About Pernille Rudlin

Pernille Rudlin was brought up partly in Japan and partly in the UK. She is fluent in spoken and written Japanese, and lived in Japan for 9 years.

She spent nearly a decade at Mitsubishi Corporation (the Fortune 100 $190bn Japanese investment and trading conglomerate) working in their London operations and Tokyo headquarters in sales and marketing and corporate planning and also including a stint in their International Human Resource Development Office.

More recently she had a global senior role as Director of External Relations, International Business, at Fujitsu, the leading Japanese information and communication technology company and the biggest Japanese employer in the UK, focusing on ensuring the company’s corporate messages in Japan reach the world outside.

Pernille Rudlin holds a B.A. with honours from Oxford University in Modern History and Economics and an M.B.A. from INSEAD and she is the author of several books and articles on cross cultural communications and business.

Since starting Japan Intercultural Consulting’s operations in Europe in 2004, Pernille has conducted seminars for Japanese and European companies in Belgium, Germany, Italy, Japan, the Netherlands, Switzerland, UAE, the UK and the USA, on Japanese cultural topics, post merger integration and on working with different European cultures

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Here are my most recent posts

Attitudes to time

Whenever I run training sessions for mixed groups of Japanese and European managers, it is always fun to observe the nationalities of the participants who arrive first and of the people who arrive last. In a seminar last week, the Norwegian participant was precisely five minutes early. The last to arrive (more than an hour late) was a Frenchman, originally from the south of France. In Europe, it is reliably the case that the further south you travel, the more people have a ‘flexible’ view of time.

When I later picked up on this with the Norwegian participant, he looked worried for an instant and said “I was only five minutes early”. This attitude strikes me as very similar to the Japanese approach, which is to be early for appointments, but only by five minutes. Any earlier than that would inconvenience the other person. I have been in coffee shops in Japan, near clients’ offices, and realised that other salespeople, like me, who had arrived too early, were killing time with a quick cup of coffee. I realised this because at about ten minutes to the hour, we would all rush to the till to pay and go.

This behaviour seems to be in direct contradiction to Japanese schedule-keeping patterns when it comes to internal meetings, however. Unless there is a senior executive at one of these meetings, Japanese employees are frequently late. This also holds true, regrettably for me, for training sessions. If there is a senior person is coming, the five minute rule applies. I have even seen junior employees peer through the window, see that a senior person has already arrived, and run away rather than be late.

It would seem that when the meeting is of peers and is ‘in-group’, Japanese people revert to a more relaxed view of time. Not only are they frequently late, but they will answer e-mails via their laptops in the meeting, keep their mobile phones switched on to take calls and be hauled out of the meeting to talk to someone else, sometimes not returning for half an hour or more.

My explanation of this is that when it is an internal meeting, a Japanese worker does not feel the meeting excludes or has priority over all the other relationships that he or she is having to attend to at the time.

While this kind of behaviour drives North Europeans crazy, I also had a Japanese expatriate manager complain to me about the behaviour of a German purchasing manager he went to visit. Apparently the German left his mobile phone on, without even muting the ringtone, all the way through the meeting. Every time the phone rang, the German purchasing manager would look at who was calling, then put the phone back down and let it ring until it switched to voice mail.

I have talked to various Europeans, including Germans, about this, and have come to the conclusion that, for once, there is no national cultural tendency behind this behaviour, it is merely a customer playing status and power games with a supplier!

This article by Pernille Rudlin originally appeared in the Nikkei Weekly.  This and other articles are available as an e-book “Omoiyari: 6 Steps to Getting it Right with Japanese Customers”

For more content like this, subscribe to the free Rudlin Consulting Newsletter. 最新の在欧日系企業の状況については無料の月刊Rudlin Consulting ニューズレターにご登録ください。

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Women in Japanese Business

Many of my clients who have Japanese customers have been asking me recently whether there will be a problem if they put a woman in charge of a Japanese client account. Being female myself, I instinctively want to support other women in business and declare that there should not be a problem.

I never felt discriminated against or even any resistance from clients in the nine years I worked in a Japanese company, selling to Japanese customers for many of those years. No doubt it helped that I clearly had the endorsement of my blue chip Japanese company, and that I spoke fluent Japanese. Also, as I described in my previous article, the “person in charge” role I had, known as madoguchi or tantosha, is understood to have a team behind it, including a team leader and general manager, so if there was some need to have a senior, male person involved, this could easily be arranged.

I also thought there were some positive advantages to being female. I sensed the clients enjoyed the novelty of having a young, foreign female to deal with and that they also felt more relaxed and were more open with me than they might have been with a male salesperson. Showing that you are intelligent and competent is of course key, as well as making the most of the perception that (rightly or wrongly), women are more detail oriented and accurate.

It is harder for Japanese women than foreign women to gain management roles, as there is a widespread assumption that that any Japanese woman must be in an administrative role. This is based in harsh reality – Japan has the lowest percentage of companies with a woman in senior positions, according to a worldwide survey published by Grant Thornton this year. Nonetheless, Boston Consulting Group, McKinsey and PwC all have or have had Japanese women as partners or in senior positions in their Japan offices and Accenture Japan makes a special point of welcoming women graduates in its recruitment.

Even Japan-headquartered companies are having to change the way they treat women employees. “Tayousei” (diversity) has become a buzzword, and is taken to mean giving equal career opportunities to women. Most major companies stopped graduate recruitment of so-called ‘Office Ladies’ in the 1990s and now outsource most of their administrative staffing needs to temp agencies. Although the number of women in the management track at major companies has not increased dramatically, with an ageing population and a dearth of middle management due to hiring freezes in the 1990s, making the best use of half the population has become a necessity rather than window dressing.

I have heard Japanese men say that the reason they don’t put women in client facing positions is that women “don’t drink”, which is a euphemism, I suppose, for the client entertainment, in hostess bars and so on, which are deemed by some in Japan to be necessary for good business relationships. This may be so, but frankly, if the main reason your customer chooses you as a supplier is because of your in-depth knowledge of girlie bars, you have a problem!

This article by Pernille Rudlin originally appeared in the Nikkei Weekly.  This and other articles are available as an e-book “Omoiyari: 6 Steps to Getting it Right with Japanese Customers”

For more content like this, subscribe to the free Rudlin Consulting Newsletter. 最新の在欧日系企業の状況については無料の月刊Rudlin Consulting ニューズレターにご登録ください。

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‘Tantosha’ and ‘madoguchi’ coordinate communication traffic

When I worked for a Japanese multinational in the UK, I used to answer my phone with the name of the company. Annoyingly, this meant I was often mistaken for a secretary or a receptionist, but I persisted because I knew it was what our Japanese customers and colleagues expected. We all had direct lines, both in the UK and Japan, but in Japan there was ‘group pick up’ for each team and it was considered unprofessional to let any phone on the team ring more than a few times. Voicemail was not used and still is not widespread in Japan.

Japanese customers expect to get through to the person in charge, the tantosha, or someone who is on their team. We had a whiteboard calendar in my Japanese office, where everyone wrote in their business trips and meetings, so each team member knew where the others were. We also knew the basics of each other’s business, thanks to the fact that, as in most Japanese companies, we had an open plan office, with teams clustered together, so we could hear and see what other team members were doing. So not only could we tell the customer where the tantosha was, but we could usually say something more helpful about the status of their business than “can I take a message?”

A tantosha is not necessarily in charge of the team nor do they have ultimate decision-making authority but does have day-to-day responsibility for that customer’s business.

The term ‘madoguchi’, window, is sometimes used, when someone is the ‘window’ into an overseas office or another partner company. They may not be the expert or decision maker that the other company ultimately need to speak to, but they are the ‘first port of call’ or may be in charge of the overall coordination of a deal.

An Australian fund manager I met last week commented on this ‘madoguchi’ system. “I think the poor Japanese guy in the company we were dealing with was confused and overworked, because he seemed to be the only person on their side working on the deal. Whereas on our side there were about half a dozen people he had to talk to, each expert in their own area, and each with decision making authority. He, on the other hand, didn’t seem to have any decision making power at all.”

Japanese customers are accustomed to this idea of an assigned contact person, who is accessible at almost all times, who is part of a team that works collaboratively, and the access point to a network of decision makers and experts. In the UK, many of the professional services firms I advise, such as accountants and lawyers, have adapted to this expectation by setting up a “Japan Desk”, manned by Japanese speakers, who deal with incoming client queries, divert them away from using costly senior management time and provide customers with accessible, consistent and knowledgeable service.

This article by Pernille Rudlin originally appeared in the Nikkei Weekly.  This and other articles are available as an e-book “Omoiyari: 6 Steps to Getting it Right with Japanese Customers”

For more content like this, subscribe to the free Rudlin Consulting Newsletter. 最新の在欧日系企業の状況については無料の月刊Rudlin Consulting ニューズレターにご登録ください。

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There is no excuse for not having an umbrella in Japan

Japanese people who have recently arrived in the UK often wonder why British people do not use their umbrellas when it rains. I think this is partly to do with the different type of rain we have in the UK. Our weather forecasts are usually for “light showers” or “sunny intervals” or “occasional rain”. We do not have the “40% probability of rain” forecasts that you get in Japan. When it rains, it is usually not very heavy or very prolonged, unlike Japan in the rainy season. So British people can’t be bothered to carry or put up their umbrellas. The chances are it won’t rain at precisely the moment we are outside, and even if it does, it won’t be very heavy, so we will soon dry off, whereas in Japan, if it is summer, it is so humid, you can end up being damp all day if you get wet just once.

This British “can’t be bothered”, phlegmatic mentality does not work so well in Japan. There is no excuse other than that you are stupid or disorganised if you do not have an umbrella when the weather forecast says there is an 80% chance of rain.

Similarly, there is no excuse other than lack of self discipline if you are late for work or a meeting with a customer. Trains in Japan run on time. In the UK, our train systems are unreliable, and traffic congestion is a perennial problem, thanks to road works which take place during the day rather than at night as in Tokyo.

The further south you go in Europe, the less worried people are about punctuality and deadlines; what is known in Spain as the “mañana” (tomorrow, later, in the future) attitude. British people, who are of course northern European, want to be punctual but rarely are. We have almost given up trying because inevitably something will prevent us from being on time. We feel upset by being late, so we end up explaining in some detail what went wrong, to which the correct response, in the British mind, is sympathy. However, as I explained in a previous article in this series, such explanations can sound like iiwake (pointless excuses) in Japan.

A clinical trials manager at a Japanese pharmaceuticals company in the UK told me how a drugs trial she was conducting ended up being invalid, because a large number of the participants failed to complete all the tests. They simply did not turn up, because their car had broken down, they were hung-over, the trains weren’t running and so on. Her Japanese colleagues were not sympathetic. In Japan, participants would turn up. They felt she must have managed the trial badly, and indeed, I think she should have signed up even more participants than she did, as it could have been anticipated that a large percentage would drop out. It is best to be over-cautious, not optimistic, in setting deadlines when working with Japanese people, especially if part of your supply chain is in Europe.

This article by Pernille Rudlin originally appeared in the Nikkei Weekly.  This and other articles are available as a paperback and e-book “Omoiyari: 6 Steps to Getting it Right with Japanese Customers”

For more content like this, subscribe to the free Rudlin Consulting Newsletter. 最新の在欧日系企業の状況については無料の月刊Rudlin Consulting ニューズレターにご登録ください。

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For everything in Japan there is a season, even neckties

A former colleague of mine, a Japanese man who has been living in London for the past seven years, told me what he most misses about Japan is the distinctive seasons. Of course the UK also has four seasons, but this summer it has been rainy and cold more than usual and we all fear that it will merge seamlessly into the dark, damp days of autumn and winter.

Japan is well-known for its cherry blossom viewing season and anyone who has lived any length of time in Japan will also realise how obsessed most Japanese are about what food is best eaten at which time of year.

This sense of seasonal “rightness” even extends to clothing. I remember once hearing my home stay family debate whether it was too early in the autumn for the father to wear his maple leaf tie.

All this illustrates how being tuned into the seasons is vital to getting the right look and feel to your advertising campaigns and product packaging but there is also a strong commercial rhythm to the Japanese year which should not be ignored.

If you’re thinking about how to time your marketing campaign, there two bonus seasons each year, in summer and just before the New Year, when you’ll notice that advertising for luxury goods suddenly ramps up.

If you’re looking for the right timing for business proposals, it is also worth remembering that most Japanese companies operate on an April 1st to March 31st financial year. April 1st is when new graduates join companies and major reorganisations, promotions and salary changes are implemented. March is therefore a nervous month in most Japanese companies, and not a good time to propose new ideas. A mini-reorganisation is often carried out at the half year point too, on October 1st.

Japanese employees only take about half the holidays they are entitled to and so do not disappear for two weeks to a month in the summer as Europeans do. Still, business meetings in Japan are usually discouraged in July and August. This is partly because some factories close down around the Bon holiday period in mid-August, when people return to their hometowns to visit family graves, but also because the hot and humid weather saps people’s energy.

In September the business trip season starts, climaxing in the attempt to have all payments settled by the calendar year end, in order to start the new year with a clean slate. Unfortunately for those in Europe and North America who are working with Japanese companies, this final push coincides with the Christmas holidays.

The only time when Japan truly shuts down is in the first week of the year, and then another busy period begins, to the end of the financial year, and the annual ‘yosan’ (budget) panic. Then April is taken up with the after-effects of the reorganisations, after which everyone needs the Golden Week holidays at the end of April, through to early May. And so the cycle starts again.

This article by Pernille Rudlin originally appeared in the Nikkei Weekly.  This and other articles are available as an e-book “Omoiyari: 6 Steps to Getting it Right with Japanese Customers”

For more content like this, subscribe to the free Rudlin Consulting Newsletter. 最新の在欧日系企業の状況については無料の月刊Rudlin Consulting ニューズレターにご登録ください。

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Japanese customers like prompt, predictable suppliers

When I first worked at a Japanese multinational, the main method of international communication was telex. I am not as ancient as this makes me sound – it actually took several years in the 1990s for e-mail to become accepted in preference to telex within the company. E-mail was regarded as much less secure and reliable, whereas it was easy to check that the recipient had received a telex on our dedicated telecommunications network. Just to be extra sure, we were also told that every telex should be responded to within 24 hours, even if it was just with a “YRS NTD TKS” (“Yours noted, thanks”).

Nowadays, of course, e-mail has become much more reliable but nonetheless, there always remains that niggling doubt as to whether an important e-mail has reached and been read by the recipient. I do not advocate requesting a delivery or read receipt, particularly to customers, as this smacks of bullying, or mistrust. There are, however, lessons to be learnt from the telex era, particularly when it comes to working with Japanese colleagues or customers.

I encourage people working in virtual teams to agree a common e-mail response time, say 24 or 36 hours. This is usually greeted by groans from people who have so many incoming e-mails, they worry they will spend the whole day responding to them. The point is that the response does not have to be the full answer to the e-mail, it can just be the e-mail equivalent of a “YRS NTD TKS” – to show you have received it or are working on the response. It may even be a good idea to indicate when you intend to respond fully.

I advocate this prompt response whatever the nationality mix of the people involved, but it is especially important when communicating with Japanese customers or colleagues. Japanese customers are mostly highly risk averse, and looking for reliability and responsiveness in their suppliers. As a foreigner, you represent an unknown, and a risk. A quick reply shows that you are responsive and giving the other person priority. The reply should also be positive, in the first instance. Even if you think the ultimate answer is going to be “no”, it is good to show willing, with a phrase such as “we will investigate this further and revert”.

Being prompt, but also responding in a consistent way, demonstrates a third characteristic that Japanese customers value, which is a predictable process for dealing with their requests.

I conducted a Japanese client satisfaction survey for a firm of British patent attorneys a couple of years’ ago. The results were very clear. Happy customers were those who knew that their patent applications were going to be dealt with in exactly the same way each time by the British attorneys, from the method of response (letter, fax, e-mail etc), through to the wording, the person in charge and the timing.

Being prompt, positive and predictable will go a long way towards reassuring Japanese customers and colleagues that they made the right choice in you.

This article by Pernille Rudlin originally appeared in the Nikkei Weekly.  This and other articles are available as an e-book “Omoiyari: 6 Steps to Getting it Right with Japanese Customers”

For more content like this, subscribe to the free Rudlin Consulting Newsletter. 最新の在欧日系企業の状況については無料の月刊Rudlin Consulting ニューズレターにご登録ください。

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In Japanese business, apologising for others can be sincere

A manager in charge of the customer call center serving North America, told me last week that she trains the call center operatives not to say ‘sorry’ when they respond to complaining customers. I assumed this was because in the US, saying ‘sorry’ would be seen as an admission of fault, compromising the company in any future law suit. It turns out this is not the only reason. “American customers don’t want to hear ‘sorry’,” she said. “They think it’s not sincere, and in any case, it is not the operative’s own fault, so why should they say sorry?” “What do American customers want, then?” I asked. “Resolution” she said, and added that operatives are also told to ‘acknowledge’ the complaint, and make some kind of empathetic statement, to show they realise that the customer has had a bad time.

This discussion of the American approach to customer complaints came up because I was describing in a training session what I thought was the right approach to dealing with mistakes in a Japanese context: say sorry, don’t make excuses (iiwake) and describe how this mistake is not going to happen in future (hansei, which literally means ‘reflection’). I was contrasting this with the British approach, which is to say sorry, but in a transparently insincere way, and then to go into lengthy or pointless explanations of why the error occurred, which usually sound like iiwake to my and most Japanese people’s ears. An infamous example is the pre-recorded announcement you hear all too often British railways; “We would like to apologise for the late running of this train, this was due to the lateness of the incoming train”.

Often British customer-facing staff won’t say sorry at all, for the same reason that the American customer service manager gave, which is that they feel that because the mistake was not their fault, or in their control, they do not need to apologise. This is very different to the sense of collective responsibility that customer-facing staff have in Japan. They will say sorry, very sincerely, even if it is not their own individual fault, because they feel that they are part of the company that made the mistake, so they do have responsibility and could have had some kind of control or influence on the outcome. They also wish to say sorry for the customer having had a bad experience.

A few weeks after I took over a sales role in a Japanese company, we lost some business from an important customer. It turned out that over the course of at least a year, we had been delivering raw materials to the customer out of sync with their production schedule, and at a price much higher than our competitors. Instead of blaming me, my team leader (who was also new to the job) went with me to the customer, and together we bowed deep several times, said “taihen moshiwake gozaimasen” (literally – “there is absolutely no excuse for this”), promised to lower our prices and deliver at more convenient times. The customer let us have 20% of the business back, on a trial basis.

This article by Pernille Rudlin originally appeared in the Nikkei Weekly.  This and other articles are available as an e-book “Omoiyari: 6 Steps to Getting it Right with Japanese Customers”

For more content like this, subscribe to the free Rudlin Consulting Newsletter. 最新の在欧日系企業の状況については無料の月刊Rudlin Consulting ニューズレターにご登録ください。

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Customer visits key to sales success in Japanese markets

I was recently shown around the offices of one of Japan’s largest recruitment agencies. There was the bustle and hum you would expect of a successful company in one of the fastest-growing industries in Japan, but the sales department was empty and silent.

The director explained to me that any salesperson found in the office during working hours would be poorly evaluated and their bonus would suffer. It was tough on the sales people, who are often shown the door when they cold-call on clients. But the company strongly believes in gemba (or genba) shugi, literally ‘on-the-spot-ism’ as part of its sales strategy.

I am not suggesting that everyone selling in the Japanese market should door-step their customers, but before you pick up the phone or send an e-mail to a client, it is definitely worth considering whether you could arrange a face-to-face meeting instead.

I was first introduced to gemba shugi in the 1990s when I was working at a major Japanese trading company in Tokyo, selling granite to a Japanese stone wholesaler. Samples would arrive at my office from around the world, but instead of sending them off by courier to the customer, as I might have done in the UK, I called customers and arranged appointments. I did this not only so I could see their reaction with my own eyes, but also because most companies would try to make such a visit worthwhile by spending an hour talking about their business and swapping industry news, which often led to sales leads. One time, after a customer had given his opinion of a sample, he mentioned to me, as we chatted over a cup of green tea, that an architect had visited, looking for blue granite. Of course this was exactly the kind of lead that I was hoping for, so as soon as I got back to my office, on the other side of Tokyo, I sent off a request to all my contacts around the world, asking them if they had any blue granite. It led to several thousand dollars worth of business for us.

Gemba shugi is normally used in the context of a manufacturing operation, in the sense of it being important that managers go out on to the shopfloor, to see for themselves, or even ensure that decisions are made at the shopfloor level. But I believe it is the secret of success in Japanese sales and customer service, too.

This article by Pernille Rudlin originally appeared in the Nikkei Weekly.  This and other articles are available as an e-book “Omoiyari: 6 Steps to Getting it Right with Japanese Customers”

For more content like this, subscribe to the free Rudlin Consulting Newsletter. 最新の在欧日系企業の状況については無料の月刊Rudlin Consulting ニューズレターにご登録ください。

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The importance of establishing a hybrid culture in cross border M&A

This article, written by Rochelle Kopp, founder of Japan Intercultural Consulting and Pernille Rudlin, European Representative of Japan Intercultural Consulting appeared in the December 2006 edition of Success Stories Japan

The non-integration strategy

The overseas M&A spree by Japanese companies in the late 80s was legendary for its excess and for its failure. Just as many Japanese firms lost billions on high profile foreign real estate investments during the bubble period, many others were similarly burned on the overseas companies they acquired. Often there was nothing fundamentally wrong with the acquired company, but it quickly ran aground when the new Japanese parent sent large numbers of expatriates to manage it, alienating the existing staff and causing them to leave, thus destroying the original corporate culture. At the other extreme, the acquired foreign firm was never integrated into the company as a whole, and left to operate on its own.

This latter approach has various tempting aspects to it. One obvious one is the cost saving in using fewer Japanese expatriates. The Japanese headquarters company can also justify it to themselves philosophically by saying that they are respecting the local culture by not imposing the Japanese company culture on the new subsidiary. The new subsidiary is likely to react positively too, feeling relief that they are not going to lose the autonomy that they had before and that they will not have to deal with the inevitable tensions caused by having to integrate staff from the parent company. If the newly acquired company is already performing well, then this approach seems to offer continuity and can be justified by an ‘if it ain’t broke…’ philosophy. If the newly acquired company then starts to have problems, the headquarter staff can point the finger of blame at the legacy management.

It is precisely when the new subsidiary starts to have problems, or indeed when there are positive developments, such as new plant investment, that the sustainability of the ‘leave them alone’ approach becomes doubtful. Superficially, allowing the new subsidiary autonomy shows that the subsidiary management is trusted by the headquarters, but this trust is quickly revealed as having been surface only, when large numbers of expatriate Japanese are flown out to trouble-shoot, or to set up the new plant. Real trust has not been built up through in-depth, side by side collaboration by key personnel from both companies. Without this real trust, Japanese headquarters will be reluctant to delegate. Well written, positive sounding monthly management reports from subsidiaries and the occasional board meeting are not enough to persuade most Japanese managers that when it comes to the crunch, the local managers can sort out problems or set up new projects in the correct corporate ‘way’. They also worry, probably rightly, that the systems and processes that they can rely on in Japan are not well embedded in the overseas subsidiary. Underpinning both the lack of trust in people and in the processes is a lack of trust that would have come from explicitly shared values and an understanding of how those values are manifested in the workplace.

An example of this that we have come across recently was when a joint venture between a large Japanese chemicals company and a large European chemicals company became a fully owned subsidiary of the Japanese company. Initially, the Japanese company let the newly acquired company carry on as before, with a European Chief Executive Officer and a wholly European team of managers, all originally from the European chemicals company. Then the CEO left and was replaced by another European, and the Japanese company sent over one expatriate – a sign that they were beginning to get nervous after the departure of the known and trusted CEO. Then when the second CEO left, he was replaced by a Japanese expatriate. Then, when plans for a new factory in Europe were approved, more and more Japanese expatriates began to appear, to the point where the senior management team is now half European and half Japanese.

This has led to complaints from the Europeans about the perceived behaviour of the Japanese expatriate managers – the long and non-transparent Japanese decision making processes seem to exclude the Europeans. National cliques are forming, and suspicion and paranoia are rife. The long hours worked by the Japanese managers worry the Europeans, who wonder if they too are expected to work until late at night every night, and on weekends.

This worry is justified, because for many Japanese companies, a willingness to work late is seen as an indication of loyalty to the company and ability to put the group wellbeing before individual needs. If employees do not work late, they are less trusted.

Does this mean that European employees of Japanese companies should work late if they wish to be trusted? It would certainly help, but we believe this is a very dangerous expectation to impose on locally hired staff. Quite apart from the damage that excessive overtime work is causing to Japanese society itself, Europeans are very keen to preserve their work/life balance, and many will simply refuse to work at a company where long hours are the norm. We already know of a British company, recently acquired by a large Japanese healthcare company, who told us they are having problems hiring a Chief Financial Officer, because good candidates are saying that they are deterred by the notoriety of Japanese working hours.

Behaviours, values, and culture

Behaviours such as a willingness to work long hours are proxies that companies use to measure how far corporate values are being upheld by employees. Different cultures may have disagreements about the desirability of some of these behaviours but there is usually plenty of common ground regarding the values themselves. For example, few people would question the desirability of ‘loyalty’. It is how these are thought to be manifested that is the sticking point.

This is where the creation of a hybrid culture comes in, but it is not enough to have a lovingly crafted, mutually-agreed list of values or mission statement. There has to be agreement on how these values will be demonstrated and how the mission statement will be implemented.

The framework of a hybrid culture is a set of communication norms that are designed by the multicultural work team, blending the best practices of each culture. A norm is a behaviour (way of doing things, or custom) that the group practices on an ongoing basis. A norm serves as a ‘ground rule’ for the group’s behaviour. Through a process of consciously creating norms for the group, positive norms can be selected. If norms are not created consciously, there is the danger that negative and counter-productive norms will develop.

In the team building sessions we have conducted, we first of all ask for behaviours that each national group has noticed in the other group, which they find positive, and behaviours that they find puzzling or troubling. Then we analyze the behaviours to uncover the values underlining them. Some of the values can be acceptable to all, and some may not be as high priority for some national or corporate cultures as for others. For example group orientation is more important to Japanese than it is to Americans or Europeans, and role clarity is less important to Japanese.

We focus first of all on the common positive behaviours. These are the starting point for the group norms. For example, a common one that Japanese mention with regard to the British and the British mention with regard to the Japanese is “helpfulness”. Then we look at the behaviours which the team has found puzzling or troubling; lengthy decision-making for example. The long time that Japanese spend on decision-making can be traced back to Japanese values of consensus decision making, relationship orientation and group orientation. Consensus decision-making is not a value that is totally alien to other cultures. Within Europe, for example, the Swedes, Dutch, Belgians and Germans all have forms of consensus decision making. However many Europeans also value swift actions and are more task-oriented than relationship-oriented. The group can then come to an agreement that decisions should be made through consensus, but a time limit or a limit on the number of people that have to be consulted, or a limit on the number of pre-meetings can also be set.

Foreign acquisitions in Japan

The same process can be used for acquisitions of Japanese companies operating in Japan by foreign companies. Indeed, if values are not compared and mutually comfortable norms and structures created, it can jeopardize the entire deal. In one case we are aware of, a potential acquisition of a Japanese components manufacturer by an American company was scuttled because the American side was insistent on the particular role that sales engineers should play in the organization. This view was based on a particular set of values and assumptions concerning how to work with customers. The American firm viewed their way of using sales engineers as a key aspect of their competitive advantage, that they felt very emotionally attached to. The Japanese organization had a strikingly different approach, and was reluctant to suddenly change a way of doing things that had worked in the past and was comfortable for their Japanese customers. Faced with this clash of approaches, the American organization became nervous, and discussions ground to a halt. If the two sides had taken the opportunity to dig beneath the formal structure of the engineer role in each of their organizations, and discuss their values relating to customer service, they might have discovered more similarities than differences, and been able to find a common ground to move forward.

In acquisitions of Japanese companies operating in Japan by foreign firms, these issues of culture often become key sticking blocks. This is in part due to the fears that many Japanese have about having their taken over by foreign owners, since this is something that is still rather rare and dramatic in Japan. Indeed, acquisitions of any type are less familiar to most Japanese than to people in the west, and having the acquirer be a foreign firm is a wild card that leads to more concern. Also, since most Japanese have spent their entire working lives at one firm, they tend to be particularly attached to their company’s existing ways of doing things, and less comfortable trying other approaches. Thus, foreign firms making acquisitions in Japan need to take particular care to not impose their culture willy-nilly on the acquired firm, and instead working together to develop a hybrid that leverages the best of both the acquirer’s and acquiree’s values and business practices.

Culture as a “powerful seed”

Carlos Ghosn, President and CEO of both Nissan and Renault, has said that “cultural differences can be viewed as either a handicap or a powerful seed for something new.” The process of creating a hybrid culture, and explicitly stating the behaviours or competencies that are expected by employees in order to demonstrate the values of that hybrid culture, can lead to an enhanced competitive advantage for the new company. Greater trust between employees will allow access to capabilities and knowledge which might otherwise remain hidden inside each culture. The new culture and its associated behaviours can help the company overcome rigidities from its past. Also, by discussing the issue of culture head-on, the company can avoid having it become the catch-all for every friction or discomfort that comes up during the acquisition process. If cultural issues have been examined and addressed, it’s difficult to start blaming everything on “those Japanese” or “the Americans.” Furthermore, we have found that the cultural discussions held in the process of designing the hybrid culture and its norms lead to a greater mutual understanding and feeling of closeness between the acquirer and acquiree personnel, that becomes a key basis for ongoing cooperation and synergy.

U.S.-based Rochelle Kopp and U.K.-based Pernille Rudlin have assisted several major Japanese firms with post-merger integration. For further information on their work please visit www.japanintercultural.com.

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Bowing, handshakes and greetings

The following dialogue between Tadaharu Iizuka, Managing Director of Centre People, a recruitment consultancy and Pernille Rudlin, European Representative of Japan Intercultural Consulting appeared in Journey (a weekly magazine for the Japanese community in the UK) on 1st September 2005.

Iizuka: A while ago there was a TV commercial for a British bank which I found very amusing. It showed a British businessman and a Japanese businessman meeting for the first time, and both sides were very nervous. The Japanese man extended his right hand to shake hands and at the same time the British man took a very deep bow. Then they reversed and did the opposite and again missed each other. You really felt that East and West will never meet.

Rudlin: Even though that was a TV ad, it is something that you can imagine happening for real. I have a similar story which I will tell in a moment, but it is certainly true that as an intercultural consultant I am almost always asked by people if they should bow when they meet Japanese people for the first time.

Iizuka: Is it a question concerning how they should bow?

Rudlin: Sometimes they ask that, but actually it is often about whether it is OK to shake hands or whether they should follow Japanese customs. They seem to be quite apprehensive about it. The commercial you mentioned may only be adding to the confusion. In reality, most Japanese business people know Western customs very well and practice them. Because of this, I usually advise that when you first meet someone, a handshake is OK.

Iizuka: When a Japanese business person visits the UK and meets British people for the first time, or the other way round, it is a case of “East meets West”, so you could imagine there would be a lot of tension. There is another point regarding handshakes which I would like to bring up. I visited a client with a British female colleague and there was confusion as to who should offer to shake hands first. My colleague was holding back and did not offer her hand. Then the Japanese manager we were visiting also hesitated, so we did not manage a proper exchange of greetings. Afterwards I said to her it might have been best if she had offered to shake hands first.

Rudlin: This kind of thing happens quite often. I expect in that situation you bowed in the Japanese style, so it was rather difficult for your colleague and the Japanese manager to switch to shaking hands immediately afterwards. I have also heard in connection with this that older Japanese people were taught that it is rude for a man to offer to shake a woman’s hand. This may have been true a long time ago but now men and women are meeting as equals, so it is best to be proactive in offering to shake hands when you meet.

Iizuka: You mentioned earlier an anecdote regarding a misunderstanding over a handshake – could you elaborate further?

Rudlin: This happened to an acquaintance of mine working at a Japanese company in the UK. A newly arrived manager from Japan was ‘doing the rounds’ to introduce himself to the staff and my acquaintance put out his hand in order to shake hands, at the same time the Japanese manager bowed. Unfortunately this resulted in him poking the Japanese manager in the eye. It was rather similar to the commercial we talked about earlier I suppose. Fortunately the Japanese manager decided to make a joke of it, and took to covering his eye in mock alarm every time they met in the corridor, much to the English person’s amusement. So there was a silver lining to that particular cloud.

Iizuka: When we talk about greetings, for Japanese people in Europe it’s not just a worry about shaking hands but also about embraces and the brushing of cheeks. In our hearts maybe we think it is a good way of showing feelings of friendship. But as Japanese we do feel some resistance, and it is difficult for us to do these things naturally.

Rudlin: I think the British and the Japanese have similar interpersonal space needs. The British also like to keep a bit of distance when they are meeting someone. Sometimes you can see at parties where there are two people talking to each other and one has a smaller need for interpersonal space, that they end up moving across the room, because one is moving closer to the other, and the other keeps moving back in order to keep a distance that is comfortable to them. No doubt both Japanese and British children stay physically close to their family and familiar people, but it does seem that as they reach adulthood, expected behaviours change. For the British, it is OK to continue to show physical affection to people you are close to, but Japanese adults keep a distance even with their own families.

Iizuka: It is true that Japanese children are if anything physically closer to their families than the British. Even now there are some families where the parents and children all sleep together in a row of futons on the floor. Whereas in the UK children are usually put in a separate room from quite early on, and brought up to be independent. It seems that the way one physically interacts with others changes quite radically at some point in one’s upbringing.

Rudlin: I expect that younger Japanese people will begin to show their feelings more openly. Not because they are becoming more ‘Western’ but as a natural consequence of wanting to show their feelings directly, they will move from a handshake to an embrace, particularly amongst family.

 

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