Differences in business culture between Japan and West

TOKYO —

Below is an account from Sayaka, a reporter over at our sister site Pouch. It is an intriguing look at differences in business culture between Japan and the west. It makes one realize that there is no perfect business strategy as such but by incorporating the best parts from each culture, one can get pretty close to their own perfect business model. Moreover, Japan’s business culture has to be one of the most unique in the entire world.

Just the other day I had the privilege of liaising with several western businessmen who gave me some rather interesting views relating to differences in business customs between Japan and the West. They mentioned having recently listened to a lecture before coming to Japan on how to conduct business the Japanese way. Something that really stood out to me were their impressions of the Japanese business culture as a whole:

“Out of all the countries we’ve visited so far, Japan’s business culture has got to be the most uniquely different.”

Those who took part in the business lecture included two Frenchmen, an Englishman and an American. All four men worked in such high power roles as international manufacturing or as planning designers at construction companies. They are the type of elite that upon coming to Japan enter into managerial positions giving Japanese workers orders and undertaking transactions with other high-ranking Japanese companies. Their period of employment is usually no longer than a year and a half, after which they often shift to positions in other countries.

Below, I would like to introduce the five most interesting things from the lecture imparted to me by the foreign businessmen.

1. If a Japanese person says they can complete the job, it is best to take them on face value.

Many may think “what’s so surprising about that!?” However, looking at trends on the foreign market, a lot of workers claim to be able to complete a given task even when it clearly exceeds their capabilities. The businessman from England commented that in contrast to their foreign counterparts, the Japanese modestly accept the job at hand while delivering exceptional results.

He went on to comment: “With regard to suppliers in Japan, workers have a clear comprehension of the production scale and necessary production time. Whether it be the person who places the order from the supplier, or those who deal with the transaction thereafter, from beginning to end the level of service is consistently high. If we look at Western business culture, incompletion of a task within the designated period often sees the worker placing the blame on the boss by claiming that his directions weren’t clear. Thus, for the Western worker, one can, to some degree, avoid responsibility.

“In contrast, in Japan, if business doesn’t go according to plan, it becomes the problem of the individual undertaking the task. What’s more, the Japanese deliver a service that goes far beyond what was originally requested, leaving many customers very satisfied. The fact they carry out the job with consistency means they are easy to work with.”

2. From a Japanese perspective, the customer is God.

According to the American businessman: “Westerners, particularly the French, tend to go by the ideology that the customer and customer service are on an equal footing. This takes root through the idea that one is exchanging money for a service and the view that both are equal components. In this way, it is seen as fully acceptable for the person providing the service to declare from the outset that they refuse to do something as they see fit. However, in Japan customer service is paramount, which also has the benefit of keeping the customer happy and maintaining healthy mutual relations.”

Nevertheless, he does have one suggestion for improvement when it comes to Japanese business ethics.

“The reservation of both the customer and supplier not to offend the other party is perhaps a little too strong. In order to produce the best result, speaking one’s mind more is what’s required.”

3. For the Japanese, the company conference room is not a place for discussion but rather somewhere to report progress.

From a Westerner’s viewpoint, a meeting room is a place for discussion about current work projects and serves as place to dedicate time to reach a conclusion about something. Many westerners find the idea that Japanese workers use the conference room simply to report findings rather bewildering.

However, one French businessman takes a more positive approach to this style of conduct. “This is all part of Japan’s product efficiency and when you think about it, contacting the parties involved and reaching a decision before the meeting can actually have the benefit of making everything go more smoothly in the meeting room itself.”

On a negative note, he commented that due to the nature of the Japanese meeting room, even when asked their opinion, few people ever feel inclined to respond honestly.

4. A delay in reaching a decision is a not a reflection of a Japanese person’s inefficiency.

At first I was a little taken aback by what I thought was criticism of the speed at which Japanese work, but as the second French businessman explained, “It is difficult to deny that the Japanese take time to reach a decision, however this is by no means a reflection of inefficiency. Rather, it has to do with a difference in the decision making process.”

He then went on to give an example. “Let’s say you have a financial budget of 500,000 yen. You’re looking to request the work of an outside company and have two months to complete the task. Imagine that you have the option of considering four different companies. Company A estimates that it can complete the work in two months for 500,000 yen. Company B estimates 2.5 months at 480,000 yen. Company C estimates two months at 490,000 yen. Lastly, company D estimates over a course of a month and a half that it can complete the project for 50,000 yen.

“In the case of the French company, company A and B would be dismissed as possible contenders almost immediately, with only C and D remaining. However, from a Japanese perspective one would consider each company on their individual merits. Increase the budget by 500,000 yen or extend the work for an extra two weeks, are factors that would also enter into the consideration process. Ultimately, the priority lies with the company that provides the best service. Therefore for the Japanese, the entire decision making process takes considerably longer.”

Theoretically, calculating one’s budget and the completion period also takes time. The French therefore view paying too much attention to which company to use a waste of time. In other words, a French company treats the job at hand with great importance and upon reaching a decision is reticent to negotiate or return to a previous deliberation process. However by looking back on their decisions and considering how it could affect the overall result, the Japanese demonstrate a clear focus on the end result rather than the decision-making process itself.

This same French businessman mentioned that after actually having worked with the Japanese, what the lecture taught him was correct. “I can’t help but admire the spirit with which the Japanese strive for high quality.”

5. Alcohol allows many Japanese to reveal their true thoughts; however drinking with business colleagues is also regarded as work.

From a Western perspective, a beer with your work colleagues after a hard day’s work is only something that you do with those you are close with. However, from the lecture, it is recommended for anyone working in Japan to make a positive effort to go drinking with your sub-ordinates. The reason being that alcohol helps us relax and allows us to share opinions that we keep to ourselves in the work place. During the daytime conference meeting, a subordinate may have seemed to agree with a particular decision, but after a few drinks it becomes clear that his feelings couldn’t be more to the contrary.

The English businessman added another comment about what he learned from the lecture. “It’s not like you’re in a company meeting saying all these things. Speaking what’s on your mind doesn’t hinder your reputation and it certainly doesn’t make any one get mad at you.”

Returning back to the French businessman’s comments: “I’ve worked in many countries before but there are only two business cultures that stand out as being so remarkably different. One of them is India. The other one is Japan. From the way people work, the process of decision making and the fine attention to detail, there are many things to be learned from Japan’s business world.”

Admittedly not all these Japanese business traits can be applied to the Japanese youth of today, but after hearing about the lecture from the foreign businessmen the following things became apparent to me.

Maintaining the aspects of Japanese business deemed as virtuous in the lecture and discarding of the areas that received criticism can be advantageous. In addition, when working with colleagues from the western world, being adaptable to alternative working methods might also be beneficial.

Read more stories from RocketNews24.
25 Things In Japan Most Likely To Blow Foreigner’s Minds
“No Chairs Allowed” and Other Surprising Meeting Rules from Industry Giants
10 Things Middle-Aged Japanese Men Say While Out Drinking That Make Their Coworkers Hate Them

RocketNews24

  • 0

    paulinusa

    “Let’s say you have a financial budget of 500,000 yen. You’re looking to request the work of an outside company and have two months to complete the task."

    "Company A estimates that it can complete the work in two months for 500,000 yen."

    "In the case of the French company, company A and B would be dismissed as possible contenders almost immediately, with only C and D remaining."

    So why is company A a deal breaker?

  • 5

    Yubaru

    Many may think “what’s so surprising about that!?” However, looking at trends on the foreign market, a lot of workers claim to be able to complete a given task even when it clearly exceeds their capabilities.

    Stereotype maybe? If this was the reality the person would probably be out looking for a new job in a very short time!

    “This is all part of Japan’s product efficiency and when you think about it, contacting the parties involved and reaching a decision before the meeting can actually have the benefit of making everything go more smoothly in the meeting room itself.”

    More smoothly? How about a massive waste of time listening to people read the files or paperwork word for word when all one has to do is read it themselves. The only point in a meeting here is to get a consensus agreement for something already decided upon prior to the meeting.

    Things don't go so smoothly afterwards when people against ideas start their back-stabbing.

    What's the point of wasting time in a meeting if everything is decided ahead of time? Oh right, I already answered that part. Doh!

    1. Alcohol allows many Japanese to reveal their true thoughts; however drinking with business colleagues is also regarded as work.

    It's the way to keep the old boys network in place and for guys to go out and screw around on their wives and families under the guise of work.

    Social events serve a purpose granted, but it's more a daily thing for many that if they can't tell their "true" thoughts without drinking alcohol they have some other more serious deep problems.

  • 1

    Probie

    From a Japanese perspective, the customer is God.

    Really? Then why is the service in banks so bad? If we were god, we wouldn't only be restricted to 9am to 3pm, or have to pay a charge to use an ATM.

    For the Japanese, the company conference room is not a place for discussion but rather somewhere to report progress.

    Or talk around a subject and get nothing done.

    However, looking at trends on the foreign market, a lot of workers claim to be able to complete a given task even when it clearly exceeds their capabilities.

    Because most salarymen only take on something they are comfortable doing. No challege needed.

  • 3

    Goals0

    @paulinusa

    "Company A estimates that it can complete the work in two months for 500,000 yen."

    "In the case of the French company, company A and B would be dismissed as possible contenders almost immediately, with only C and D remaining."

    So why is company A a deal breaker?

    Because the original Japanese says 550,000 yen, not 500,000.

  • 2

    Goals0

    Increase the budget by 500,000 yen Should be 'Increase the budget by 50,000 yen'.

  • 5

    Wakarimasen

    Hmmmmmm. Nothing new or insightful here, and some of it becoming less true over the years.

  • 5

    ebisen

    Exactly my experience (of more than 8 years) of doing business in Japan.

  • 5

    Jimizo

    These Japan versus the 'West' ( what? ) generalizations are getting irritating. There was an article recently here about Japanese management versus 'western management' which was about as useful as this. As pointed out, many of the ideas here about Japan are getting dated ( I drink with my coworkers about three times a year ).

  • 12

    gaijinfo

    This article is filled with the usual fluff nonsense. The typical approach is to present the surface as "unique" while trying to imply that "unique" equals "superior."

    The author of this knows little about business, and western culture, yet still uses both in an attempt to show that Japanese Uniqueness is something special to behold.

  • 5

    dcog9065

    From my experiences (I cannot speak for anything else) the points outlined in this article is accurate. Particularly the parts about people here being honest about what is possible and what isn't, which contrasts greatly to people I deal with through my company in the US and India.

    The part about drinking is accurate as well; if it's with your colleagues it's considered work (which is better IMHO seeing as you can then expense those drinking sessions).

    One thing I would bring up (through my experiences only so not reflective of Japanese culture in general), is that in a lot of cases Japanese spend more time than what I consider necessary in understanding a problem instead of spending time on fixing it. Japanese have a very strong sense of cause and effect and go to incredible lengths to ensure that problems don't repeat themselves, which I consider a very strong trait.

  • 2

    In_japan

    Differences in business culture between Japan and West

    French = whole west?

  • 7

    Saxon Salute

    In my experience, the Japanese takeo forever to do anything, and even then it is generally done wrong. Meetings here are a total waste of time. There is never any agenda, no minutes are ever written up, and nothing ever changes as a result of them. Talking about work is not working. I refuse to attend meetings anymore, and I am the western manager! Japanese office workers are snowed under with paperwork, most of which they don't even know the purpose of. To make up for this, the average Japanese worker sits around the company for 12-14 hours a day until he or she is so tired that they can achieve absolutely nothing. This is only "unique" (that great buzz word) because anywhere else in the world you would be fired for being too inefficient and too inaccurate, but Japan's Labor laws make removing slow, useless staff members all but impossible.

  • 1

    Hide Suzuki

    @Jimizo

    "I drink with my coworkers about three times a year"

    Average Japanese people drink with their coworkers way more than 3 times a year. Obviously you and your behaviors are not the best resource when it comes how Japanese act/think

  • -2

    dcog9065

    @Jimizo

    "I drink with my coworkers about three times a year"

    I'm going to have to agree with Hide Suzuki on this. You may abhor your co-workers but drinking with them only 3 times a year seems like a very poor effort.. No offense.

  • 5

    Moonraker

    Even if any of this is true, I would still prefer to have a life.

  • -1

    SamuraiBlue

    IMHO you really don't need to go drinking with your subordinates to ask a honest opinion. What people are gauging are how much the boss can be trusted and depend upon. IF you are a two tongued weasel type who will stab you in the back then no matter how many times you go out drinking you are not going to gain trust same with apple shiners. Japanese have very little tolerance for these types and will not trust them whatever the relationship maybe.

  • 11

    warewarenihonjin

    Japanese business culture should be change I think. Many people are working so late time every day and even in a night so they miss a train. Too expensive for so many taxis! Japanese people think long time working is sign of good worker, but it is mistake, I think.

    My friend had working in a Spain for two years. She says Spannish people start a working at 8 am in a morning, then at lunchtime relax for three hours! Go in a home, or shopping, museum etc. Then, three pm back to work with refresh mind. Seven pm is hometime. Eight hours work, all work is finished - they are not lazy people, only spannish different custom. Hard worker for eight hours is good day work, I think. Then, evening is free, meet friends, nice dinner, play with kids - even make a kids!

    Then she backed to Japan and all her office is so silently. People pretend they are too busy even for aisatsu. Lunchtime is in a desk as working. Long meeting every day, but no result, only reading a document. She is become accustomed to Spannish working speed, so she is finish all her job until 3pm, but of course she can't go home even 8 or 9 p.m.. She says "I want ask them "Why Japanese people are so slowly working? Let's have a enjoy life, not only with a desk!" She doesn't say this of course. She's a Japanese manner.

    So I think Japanese bussines culture should learn many things from another countrys.

  • 3

    Yubaru

    ( I drink with my coworkers about three times a year ).

    April.....New employees welcome party December.....End of year party January....New year party.

    Kind of sad in a way, unless there are financial reasons for it, there are so many other times during the course of any given month that Japanese co-workers go out for a few drinks or dinner it's unbelievable that anyone who claims to work for a Japanese company would only go so few times.

  • 2

    Saxon Salute

    I can't go drinking with my Japanese co-workers because they all insist on sitting at their desks staring blankly at Excel sheets until the last train is nigh. Since I don't like or respect any of them, that's a good thing. I prefer drinking with my friends anyway, or people who have at least half a life, which usually means non-Japanese people.

  • -1

    umbrella

    Saxon You totally nailed it. Well done mate!

    Who the hell wants to go drinking at 10pm with a group of boring Japanese?? I work like hell everyday, earn a pretty high salary for this work and go home when I want, which is hours before the robotic Japanese workers, and I have a life.

  • 8

    JeffLee

    Japans business culture has to be one of the most unique in the entire world.

    Because no sane worker elsewhere in the world would want anything to do with it. Most employees in gaikoku actually enjoy coming home for dinner with their spouses/families.

  • 3

    Yubaru

    Because no sane worker elsewhere in the world would want anything to do with it. Most employees in gaikoku actually enjoy coming home for dinner with their spouses/families.

    That's why it's unique here!

  • -1

    Kazuaki Shimazaki

    So why is company A a deal breaker?

    Because company C had the same time but only 490,000 yen, thus company A is clearly inferior (lowest bidder algorithm).

    The real choices to a Westerner thus would be C and D, with C being 10,000 yen cheaper and D being 2 weeks faster.

    However, a Japanese may just allow B if he knows by experience that B would take care in its work, and A won't be dismissed just for a 10,000 yen difference if they know A (and it provides say good after sales service) while C is an unknown.

    If C and D are Western companies, however, they would squawk like mad if the Japanese company chose A or B. To them, they met the requirement better but will refuse to entertain any possibility of subjective, qualitative factors being more important in the Japanese mind.

    At least, this is what the article is probably trying to say.

  • 1

    Saxon Salute

    The real truth to the A, B, C and D conundrum is that the contract will generally go to the company that pays expenses for a hostess club or offers someone a free game of golf somewhere. Japanese don't sell a lot by cold-calling. Everything is down to relationships, wining and dining and just a wee tad of bribery. Most bids for contracts here are rigged and are just for show. I know because I have won so many of them in my time. There is usually nothing more advanced going on.

  • 3

    Hiroyuki Suzuki

    Yubaru

    It's the way to keep the old boys network in place and for guys to go out and screw around on their wives and families under the guise of work.

    There's no need to say that out loud! Let's stick to the tatemae, ok?

  • 3

    Fugacis

    Oh goodie, a fluffy nihonjinron article again. I see they have presented no basis for these claims about the "uniqueness" (read "superiority") of Japanese business culture; just a few vague properties that actually could apply to companies anywhere in the world and still make sense, because the variation in culture between companies is greater than that between countries. Japan likes to pretend that it is unique, but all the same hubris is there as in the Western world.

    Also, many of these are pretty negative things.

    This laying of the responsibility at the feet of the individual is not because Japanese workers are more capable; it's because they're browbeaten so heavily that they cannot say no to their corporate masters. Hence people will take on jobs that are way too big for them, and end up working feverishly 70 hours per week to get the job finished, at the expense of their family lives and their health, for deathly fear of failing, because if they do they will be fired and will be unable to voice a word of protest towards their masters.

    This isn't an admirable trait; it's being a doormat for your boss while they place all the responsibility on you and make sure that they dodge taking responsibility themselves. Workers remaining silent and meet is a bad thing.

    And feeling that you're only able to be your "true self" under the influence of alcohol is a very big red flag for alcoholism.

  • 2

    Yubaru

    There's no need to say that out loud! Let's stick to the tatemae, ok?

    I am now in the process of cleaning off my monitor thank you very much! LOL! I just spit my delicious tanrei up on it!

  • 1

    humanrights

    Its good to be a foreigner and enjoy LIFE! Haaaa I ll drink to that right now!

  • 2

    bigfujiyama

    The same article has been written over and over since the 1980s.

    Originality please.

    Also don't assume that all 'Western' is the same.

  • 0

    yabits

    Running through the article and through many of the comments is a root cause, in my opinion: Japan suffers from a dearth of genuine leadership and vision. Everyone seems content to let the herd lead itself -- even it it's over a cliff.

    This is not to say the problem doesn't exist elsewhere -- it surely does -- but it's definitely in evidence in Japan.

    One item based on personal experience: my former company (US-based) would send me to Japan for several weeks a year to help train my counterparts. One of these trips happened to coincide with the "preparation" for a visit by the American CEO. I was amazed, shocked, and ultimately repulsed by how nearly all other work in the office stopped for days at a time while nearly everyone set to work making charts and slides to "explain" how things were going.

    There is a common saying in these parts: "No good deed goes unpunished." In Japan, one might replace "good deed" with "act of genuine initiative." And therein lies some of the problem.

  • -1

    Yubaru

    and end up working feverishly 70 hours per week to get the job finished, at the expense of their family lives and their health, for deathly fear of failing, because if they do they will be fired and will be unable to voice a word of protest towards their masters.

    Failure does not equal firing. Oblivion in the company? Maybe.....

  • -2

    ChibaChick

    It's the way to keep the old boys network in place and for guys to go out and screw around on their wives and families under the guise of work.

    There's no need to say that out loud! Let's stick to the tatemae, ok?

    No, lets stick to the truth. Because it IS the truth whether you are prepared to face up to it or not. There IS a need to say these things out loud because until they are out there, nothing will change.

  • 0

    Yubaru

    No, lets stick to the truth. Because it IS the truth whether you are prepared to face up to it or not. There IS a need to say these things out loud because until they are out there, nothing will change.

    Chiba Chick......My post and I am pretty certain that Hiroyuki's as well were laced with sarcasm.

    Remember this though it takes two sides to tango.

  • 2

    Sensato

    the Japanese deliver a service that goes far beyond what was originally requested, leaving many customers very satisfied.

    Overgeneralize much? There are certainly many cases where this is so, but also many instances where this definitely does not hold true.

  • 2

    Sensato

    In the 1980s this article would have seemed profound, but fast forward to the 2010s and it's simply laughable.

    Most of today's leading CEOs realize that the model for business (and societal) success does not call for hours of wasteful meetings, putting in excess overtime to keep up appearances, mandatory frat-boy drinking sessions followed by work on a hangover the following day, group-think to the point of intellectual atrophy, and no quality time with family (etc, etc).

  • 2

    darnname

    Ah, what nostalgia. That Japan died decades ago. The new Japan works like this:

    It takes twice as long, using three time the people, to accomplish half as much.

  • 0

    wtfjapan

    ah just look at Nissan took a Frenchman with western business ideas to turn the company around. if J business ideas and management were so superior we wouldnt have seen 20+ years economic stagnation, and huge job losses to China. its this our way is better nothing needs to be changed thinking is whats bring Japan down. unfortunaetly ittl take an economic collapse before any real changes take place. sigh

  • 1

    Spanki

    I laugh at myself these days because I first came to Japan on a working holiday. I laugh at myself because I wasn't really aware that work and holiday do not go together in this country. I mean seriously, a weeks holiday (5 working days off) is considered a long holiday? Some of the guys I work with don't even take any holiday because they seem to be under some illusion of grandeur that the worl will stop revolving if they aren't at their desks.

    It would be funny if it just wasn't so sad in reality.

  • 1

    Jimizo

    @HideSuzuki & dcog Where do you get the idea that I abhor my coworkers and my behaviour is somehow detrimental to my company? Thankfully, the company I work for isn't tied in to the often outdated ideas this article is based on and we respect the fact that we have a life outside work. Bizarrely enough, I finish around six, go home and spend the evening with my partner. As far as I know, I'm not regarded as a miserable sod nor am I paranoid enough to believe that they don't invite the gaijin. Maybe times are changing.

  • 0

    Maitake

    1. If a Japanese person says they can complete the job, it is best to take them on face value.

    I once heard of a japanese who was put in charge of supplies at a company but mistook it for surprise and jumped down from the ceiling yelling surprise at his coworkers.

    1. From a Japanese perspective, the customer is God.

    ...and we must yell and shout "Irashaimase!!" in high-pitched nasally voices at God.

    1. For the Japanese, the company conference room is not a place for discussion but rather somewhere to report progress.

    Even if there is none...

    1. A delay in reaching a decision is a not a reflection of a Japanese person’s inefficiency.

    ...just a reflection of their trying to figure out how to skew the truth...

    1. Alcohol allows many Japanese to reveal their true thoughts; however drinking with business colleagues is also regarded as work.

    i.e. many Japanese are alcoholics and cannot express their true feelings and break away from social conditionings without the aid of a substance.

  • -1

    dcog9065

    @Jimizo I didn't say that you abhor your coworkers, I was saying that even if you did abhor your coworkers, you would still want to put in some time having a drink with work colleagues at least to show that you have some interest in your work, and that 3 times a year is unheard of, especially considering Yubaru pointed out that there are more mandatory company outings than that in a year..

    I guess it does depend on the specific industry you're employed in and what type of position you hold, however I would assume that this would be fairly standard across all industries in Japan, with exceptions probably being English teachers and other part-time work.

  • 0

    gaijintraveller

    From a Japanese perspective, the customer is God.

    Really? I would expect a Japanese to say this along with all the other myths about Japan they like to repeat. This is far from true and it may be even further from the truth if the customer is a foreigner. Admittedly, I have had good experiences with some customer service departments in Japan, but with many I have had to fight to get any service.

    How many times have we heard things like, "We only support Japanese Windows", "There are no English drivers for our product" (a lie, there were.)? Why do some companies refuse to sell foreigners products with English menus when they sell it in every other country with menus in a multitude of languages including Japanese.

    To many Japanese companies service means smiling, bowing and taking no action.

  • 0

    LH10

    Japanese business is real sad. japan better change and make everyone in the freakn country work 8 hours. i've never worked in japan, thank god lol, and all i hear is them pretending to be busy at work and waiting for their boss to finish. stupid man. if i was working in japan i wouldn't care about waiting for my boss to finish. if i finish early i'm leaving.

  • -3

    eriktellier

    a good approach of the différences that exist between Occidental and Oriental éducations, just a bit superficial ; the roots of those relative différences you talking about have to be found in the studies of Confucianism and Christianity.

  • -3

    Knox Harrington

    Once again, a Japan vs. "the West". How can anybody take a person arguing like this serious. "The West" is not some big monolith of conformity that acts and does things in the same way. I bet a bored, Tokyo sarariiman does things very different from a business person up in Wakkanai in Hokkaido.

    This ignorant thinking of Japan vs. everyone else does feel old. It is 2013 for dog's sake.

  • 0

    Serrano

    "The west taught corruption and dishonesty to the Japanese business people"

    There is corruption and dishonesty in every country in the world. There were corrupt and dishonest Japanese government officials and merchants before the Black Ships arrived.

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