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japanese business

Home / Posts Tagged "japanese business"

Tag: japanese business

Amsterdam is first choice for Japanese companies’ regional HQ in Europe post Brexit

“When the UK leaves the EU, it is the strongest candidate for regional headquarters” says one Japanese manufacturer about Amsterdam, in the Nikkei Business magazine.  Since the UK said it would leave the Single Market, Japanese companies have started their search for new regional HQ locations.  Although Frankfurt and Zurich are also in the game, Amsterdam is seen as particularly strong.

There are many pluses: low taxes, and various regimes to suit different businesses.  The logistics infrastructure is robust and it is easy to access the other main economies in Europe from there.  Additionally, the lifestyle is congenial for Japanese people.

A priority for Japanese companies is the financial infrastructure.  “If we are physically close to our financial services suppliers, then we can easily exchange information and opinions” says the manufacturer.  Of Japan’s megabanks, Bank of Tokyo-Mitsubishi UFJ and Mizuho have regional coordinating operations in Amsterdam.  There is a possibility that Sumitomo Mitsui Banking Corporation will also move its European coordination activities to Amsterdam.

However, Japanese companies who are looking at moving their base to Amsterdam have one increasing headache, which is the uncertainty of the Dutch political situation.  In a survey from 2016 (ie before the election where Wilders’ Party for Freedom did not do as well as feared) of the members of the Japanese Chamber of Commerce in the Netherlands, political, economic and social environment came second as an increasing area of concern, after worries about employment (being able to hire or bring in Japanese employees, tax, pensions and ability to lay off workers).  The third biggest area of concern was for expatriate visas and the process of obtaining ID cards.  4th was the legal and regulatory framework – obtaining permits, approvals, meeting standards and whether those standards are appropriate.

There is a concern that if the Netherlands cracks down on immigration, it will be difficult to hire a diverse labour force – one of the UK’s traditional strengths and attractions for Japanese companies.

Top 30 Japanese companies in Europe 2021

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Japanese companies demand too much perfection

Okada Hyogo, senior manager at Microsoft in Singapore, sports what is known in Japanese as the ‘Regent style’ hairdo – apparently named after Regent Street in London, but usually known in the UK as a DA.  He is photographed with his quiff, leather jacket and sunglasses for a recent interview with Diamond Online.  He has written various articles for the magazine, including one entitled ‘60% is good enough’.  The impact of Microsoft on his thinking is clear, in the way he recommends Japanese companies also adopt the “patch” mentality he saw in software development.  “Aim for what is feasible, not the best”, was his lesson from his time working for Accenture in the USA.

He echoes a point I often make in my seminars about the Japanese pursuit of perfectionism, which is that the 80/20 rule kicks in when it comes to costs of making an effort.  It can take 80% of effort, resources and time to achieve the final 10 or 20% to reach 100% perfection.

This might work in Japan where it is normal to work through the night to achieve “the best” but of course this kind of behaviour is not so well accepted outside of Japan.  As Okada says, in some cultures a person who works late is regarded as someone who is not self disciplined.  “They have a much stronger sense of priorities than the Japanese do.”

“Japanese are lacking individual ‘core values’.  At Microsoft we have 6 core values upon which we base our daily work.  They are ‘Willingness to take on big challenges’,’Integrity’, ‘Openness’, ‘Constructive self criticism’, ‘Accountability’ and ‘Passion’.”  Akiyama Susumu, the interviewer and President of Principle Consulting Group responds that it helps to define your own core values if you interact with people who are different to you.

As for being able to speak English, Okada believes it’s not enough by itself – an open and forward looking mindset is needed.  “You need to be interested in the other person, and be prepared to engage in discussion.”  Akiyama says it’s tempting to become silent if someone else in the meeting speaks better English than you do”.  Okada responds that he got over his own English complex when his boss said “you already speak English.  What’s important is knowing what you want to say, and how you want to progress the discussion.”  Okada’s recommendation, to those who are not confident about their English is to get to a meeting 10 minutes early and greet the other participants as they arrive with “nice to meet you!” or “Good morning!” – that way you get warmed up for communicating and also you ensure that you have a presence at the meeting.

Even in teleconferences he recommends getting a question in early like “when can I expect to finish this meeting?” as a warm up, otherwise you end up not saying anything.  For presentations he uses physical warm ups like a few squat thrusts and also practicing his “Rs”.

Another tip for meetings is to get near the whiteboard and offer to write up the agenda and minutes on it.  “That way you look intelligent and hardworking!”

He also recommends saying “Let me finish” and using your hands to signal this.  “Japanese tend to preface their requests too much”.

He finishes by saying that Japanese companies don’t have a very good image in Singapore as employers, and this has an effect on the brand too.  Japanese employers are seen as only promoting Japanese people, and demanding a lot of unpaid overtime.  Products have too many unnecessary features which only appeal to Japanese, rather as Japanese companies unthinkingly promote uniquely Japanese ways of working – such as chourei  (daily morning team meetings).  There is not one Japanese company in the Singapore Top 100 employers chosen by students.

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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Last updated by Pernille Rudlin at 2021-10-12.

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  • Japanese financial services in the UK and EMEA
  • The puzzle of Japanese foreign direct investment in the UK
  • What’s going on in Japanese HR? – online seminar July 3 15:00-16:30 BST/10:00-11:30 EST
  • What is a Japanese company anyway?
  • Largest Japan owned companies in the UK – 2024

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