Pernille Rudlin - Rudlin Consulting

About Pernille Rudlin

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

She spent nearly a decade at Mitsubishi Corporation 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.

Pernille is a non-executive director of Japan House London, an Associate of the Centre for Japanese Studies at the University of East Anglia and she is also a trustee of the Japan Society of the UK.

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Here are my most recent posts

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”

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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”

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.

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.

Japanese use of ‘telepathy’ to communicate

Pernille Rudlin was interviewed by Tadaharu Iizuka, Managing Director of Centre People, regarding the Japanese use of ‘ishindenshin’ or telepathy in order to communicate. It appeared in the Japanese language weekly Journey magazine, May 5th 2005.

Iizuka: Although Japanese attitudes towards communication and Japanese culture itself are changing, we still have a long history of unconsciously using ‘ishin denshin’ (telepathy or tacit understanding). We think that the other person has already understood what we are trying to say, so we don’t say much, but in the UK if we expect this to work…

Rudlin: …it can lead to misunderstandings or British people saying to themselves “you can never tell what Japanese people are thinking”. Research has shown that the degree of directness of expression varies between cultures. Americans are very forthright, the French quite forthright, the British in the middle somewhere, South East Asians are rather more indirect and the Japanese are very indirect. With Americans, what they say is all that they want to say, nothing more, nothing less. Which is why they find it hard to understand what Japanese people are trying to say.

Iizuka: The British are in the middle, as you say, and having talked to British people who have experience of living in Japan and they did indeed say that in this respect British are more like the Japanese than they are like Americans. Certainly compared to Americans British don’t say things as directly sometimes but compared to the Japanese, British people seem to make a distinction between when to be direct and when to hold back?

Rudlin: Yes. We definitely like to hint at things without having to say them explicitly. So I don’t think ‘ishin denshin’ is peculiar to the Japanese. I will give an example of something that happened when I was working in Japanese company. A Japanese colleague asked me to help him with a letter from a British company. He couldn’t understand the meaning of it, even though he was from a top university and spoke good English. I understood the meaning of the letter the moment I read it. The letter writer was forcefully expressing his dissatisfaction with services received, whilst keeping his anger reined in. The kind of expressions he used were “merely” and “if you would be so kind as to…” and “with all due respect”. It was very clearly as would say in Japanese ‘ingin burei’ or ‘hypocritical courtesy’, but at the same time you could not take offence at the expressions used. It was necessary to ‘read between the lines’.

Iizuka: As it happens the other day I received an e-mail in Japanese that said ‘I would like you to read between the lines to understand what I am trying to say…” so it does seem from what you say that there areas in which Japanese and British communication styles are similar. However I have heard that this expression in Japanese ‘read between the lines’ was actually originally borrowed from the West. Perhaps because in the past ‘reading between the lines’ was such a matter of course in Japan that it was not necessary to give it a label.

Rudlin: That’s a very interesting point. Highly educated British people in particular like to use euphemisms, for example if you see the classic British TV comedy series ‘Yes Minister’, you will see this. They like using a great variety of words to create subtle expressions.

However if as a Japanese person living in Europe you believe, having heard British use euphemisms, that you can use Japanese style ‘ishin denshin’ as the lynchpin of your communication with British people, you will find that things do not work out as well as you hoped.

Iizuka: Having worked in the UK for a long time I can think of many slip-ups caused by my relying on ‘ishin denshin’. I can see that it is born from my attitude that ‘we are all the same human beings’ so we can understand each other, I do not have to say anything as it is very obvious and you will surely understand it by yourself.

Rudlin: A big difference between Japanese and British communication style is that Japanese often do not use clear expressions when it is in fact necessary to do so. This can cause things to go awry, or misunderstandings or even mistrust. So it is vital sometimes to be very explicit. It is possible, given the amount of influence the USA has had on British society and culture, that the British are beginning to expect a more direct way of expression.

Iizuka: We are taught at school in Japan to express ourselves clearly but at the same time ‘ishin denshin’ culture is programmed into our way of thinking in other parts of our lives. So when we live in Europe we consciously have to adopt a different approach.

Japanese and British use of eye contact

Pernille Rudlin was interviewed by Tadaharu Iizuka, Managing Director of Centre People, regarding differences in Japanese and British use of eye contact for the Japanese language weekly Journey magazine, April 7th 2005.

Iizuka: What kind of experiences did you have when you went to junior school in Japan for six years? I hear that at that age one tends to pick things up very quickly, soaking everything up like a sponge?

Rudlin: The first six months were very tough. Of course I couldn’t understand anything and during the break times pupils from the entire school, right up to senior high school, would crowd round to look at my face or touch my hair. But children at that age are very adaptable and after about six months I was able to speak everyday Japanese and the other pupils had become used to me. I was still rather bad at the weekly kanji (ideographs) test but once I even managed to get top marks for a composition. Even now theme tunes from TV programmes, nursery rhymes and songs come back to me from time to time.
Iizuka: I suppose it was a natural progression for you after your experience of living in Japan to join a Japanese company and work for them for nine years. No doubt the experience helps you in your current work (training aimed at minimising communication issues in workplaces where there are different cultures)?

Rudlin: Intercultural communication obstacles do not only come between the Japanese and the British but also between the British and the French and other nationalities. Even if the nature of the obstacle varies, differences occur. In Japan one also says ‘the eyes are the windows of the soul’ or ‘eyes say more than lips’ but it does seem that the Japanese use eye contact a lot less when communicating amongst themselves. In the UK we have the same sort of expressions and believe that eye contact is an important communication tool. We believe eye contact during a conversation is very important and it comes naturally to us.

Iizuka: I totally agree with you. For example, it is still fresh in my memory that when I first joined a medical supplies company in Japan, the induction training specified that we should not look the client in the eye, and instead aim our eyes at the level of their necktie knot.

Rudlin: Certainly this is one aspect of Japanese culture and I am not saying which is right or which is wrong, just that if you are going to live in the UK and work here, if you do not pay attention to this cultural difference, it will cause friction and may lead to more serious situations.

I heard a of a case a while ago where a British woman complained about sexual harassment in her workplace to her Japanese boss and while she was explaining about it, asking him to do something about it, he spent the whole meeting listening to her with his eyes closed. I have seen this kind of behaviour many times in Japan and understand it, but to this woman, no eye contact meant he was ignoring her, and it simply made her more furious. She even took her case to court and claimed that she thought her boss had been sleeping in the meeting!

Iizuka: So despite the fact that he might have been closing his eyes in order to concentrate better on what she was saying, this was misunderstood to the point where the situation got unbelievably worse. You could also say that staring too hard at someone might be a problem too.

Rudlin: As I said at the beginning, the eyes are the windows to the soul, so it is important when talking to someone to exchange eye contact, to show that you are speaking from the heart. This way doing business and living in the UK will be that little bit more enjoyable.

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