A Beginner’s Guide to Understanding JapaneseBusiness Culture
Workplace customs naturally vary and you often hear of unexpected quirks of routine or expectation when sharing workplace stories with friends in different sectors.
When an international or cultural border is crossed, the differences may be more significant and can damage working relationships if misunderstood or ignored.
The Japanese workforce is often characterised as diligent and Japan’s business culture routinely described as ‘unique’ or ‘traditional’. But what does this actually mean in practice? What do you need to know before starting a new business relationship with Japanese clients or colleagues?
Three unwritten rules that underpin traditional Japanese business culture
Japan still retains a tradition of ‘Lifetime Employment’. Many employees enter a company at a young age and are expected to serve there for their entire working lives - and beyond! Often leisure activities, such as clubs and outings, are run by the company with attendance expected for current and retired staff. You become part of a micro-society with high expectations and a long collective memory. This cultural practice has had a profound influence on business customs in Japan.
1. Decision making: teamwork is valued over speed
In our Dec 2022 blog (Five Etiquette Essentials In Japanese Business) we explained that no decisions should be expected at a meeting with Japanese clients, and that to press for one could appear rude.
In Japan, a decision-making process through consensus is followed religiously. The practice actually follows the Buddhist idea that the ‘Genius of Monju’ can be found from gathering the ideas of three ordinary people. To reach a decision, multiple consultations and internal meetings are usually held to draw together the ideas and experiences of other members of the organisation. It is a collective process, not to be rushed.
In addition to this philosophy, the importance of seniority in Japan means that senior management must be informed of discussions and give approval before any decision is finalised. If this strict protocol is broken the consequence can be severe. An employee may be labelled as ill-mannered, arrogant and incompetent. This could be detrimental to your career, as you carry this label throughout your working life.
This approach could be frustrating for UK teams who are very used to making swift decisions and taking prompt action to keep projects moving forward or to keep pace with competitors in a fast-changing environment. However, one of the challenges of doing business in Japan is understanding this important cultural value and scheduling in the time for decisions to be made.
2. Overtime and holidays - being present matters
Diligence is one of the most prized virtues in Japanese culture. In a work situation, this includes being physically present - turning up and staying late at the office each day. The hours you are seen to be there are as important as the work done. Leaving the office first or before your manager is seriously frowned upon.
By contrast, in the UK, working from home is becoming more common and many people have jobs focused on results rather than hours spent at a desk. In fact, presenteeism is often viewed negatively in the UK and can be a sign of poor productivity. So appreciating this significant difference between Japanese and UK office cultures is important if you wish to do business in Japan.
The same cultural values apply to annual leave and holidays in Japan too. Booking annual leave before senior staff or taking holidays longer than that of the manager would be seen as a sign of laziness. As a result, many Japanese employees don’t use the allocated annual leave they are entitled to. This is often viewed as a sign that the individual is dedicated to the company.
3. Attitudes towards consumers
The Japanese business model has developed over centuries from a tradition of artisan craftsmanship and the specialist workshop. Perfecting a craft through years of repetition, perseverance and learning from senior masters was the only way to succeed and would eventually pay off.
This work ethic and culture have led to many success stories. In the 1980s Japanese manufacturers focused on the quality of their products rather than achieving the rock bottom prices demanded by many customers. Pride was taken in the delivery of perfect products for discerning consumers.
However, the expectation of being considered an ‘expert’ has shaped communications with Japanese customers. Frequently it is based on the final delivery of products and services, meaning it is a one-way flow of information. Customers are expected to wait patiently until the perfected new product arrives in store or at their doorsteps.
In the UK the businesses are more open to feedback and dialogue, with information and ideas flowing between businesses and customers to find better outcomes. Japanese businesses are beginning to change their customer communications, but it is still not common business practice in Japan.
Recent reforms and experiments
Change is beginning in Japanese businesses though. In 2018 the Japanese government passed a series of legislative reforms with an aim to improve working conditions and promote more flexibility in the workplace. This marks a significant break from the expectations and constraints of traditional Japanese office customs.
A legal obligation to make the employee take allocated annual leave has been introduced and overtime will be limited to 45 hours per month or 360 hours per year. To promote flexible working, there are improvements to the rights and conditions of part-time contractors, to close the gap with full-time employees. It also makes it easier for workers to move from one company to another.
These reforms are aimed at improving the work-life balance of employees, encouraging the economically inactive population back to work, and enhancing productivity as the working age population in Japan is decreasing. (Reference: 「働き方改革関連法」の概要
With Government initiatives and with the economic necessity to fill job vacancies and support an ageing population, many businesses are starting to challenge the old traditions. One way of doing this is with the help of new technologies.
Lawson Convenience Stores: avatar customer service
In November 2022 a major convenience store chain, Lawson, started an experiment using an avatar to provide customer services in store. The aim is to create a more flexible working environment and promote a diverse working style, which it hopes will appeal to employees and customers. By using an avatar, staff can work remotely to serve customers in any store. Unlike trials with AI (artificial intelligence), there is still a human employee behind the avatar meaning responses to customers are personal and spontaneous. If successful, this initiative could help the business in several ways:
An employee with difficulties standing in a store for long shifts could remotely serve
customers from a more suitable environment.
Covering for unexpected absences due to sickness can be done from multiple
locations.
A store in a remote location can be open for longer hours, served by an attendant
from another store.
Lawson is planning to deploy avatar customer service in 100 stores over three years. Enabling employees to work from home is also in the planning. This could unleash the potential of people currently unable to work, allowing them to participate in valuable economic activities. (https://www.lawson.co.jp/company/news/detail/1462039_2504.html)
Tokyu Hands: sales demonstrations via avatar
Department store, Tokyu Hands, has been working with Japan’s largest telecom company, NTT, since 2021 to use remote communication technology. A key goal is to use the knowledge of the most experienced staff to benefit a wider number of customers.
The experiment started with cosmetic department specialists assisting the sales staff in multiple stores via avatars. This allowed a smaller number of experts to work from the head office, warehouse or even from home. Avatars are also being trialled to provide product demonstrations in stores.
This has the potential to increase the effective use of staff experience without them being physically in each store. Assisted by the remote specialist staff, customer service teams on the shop floor can help customers and promote products without delays. It is also a way of sharing product knowledge quickly without going through formal training sessions.
A new Japanese business culture is emerging
The traditional Japanese working style has often attracted attention from other countries. While praised for its diligence and attention to detail, it was criticised for slow decision- making, a lack of work-life balance and excessively stressful, rigid environments, occasionally leading to personal tragedies.
With the increasing use of remote working technology and the practical reality of facing a decreasing working age population, change is necessary. The Japanese Government is encouraging a shift, promoting efficiency, diversity and fairness in the workplace. There is still some way to go but Japanese businesses are devising reformed working practices to meet the changing working environment. We will keep monitoring these changes and the practical implications for businesses aiming to trade in Japan.
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