7 Lessons From Japanese Business Culture

Although there are few business cultures that have totally escaped Western influence, the Japanese way of doing business remains relatively intact today.

Many businessmen or expatriates feel disoriented in their first dealings with the Japanese, but several have recovered and have learned a thing or two from their Eastern associates.

The country that brought us Kaizen and Just-in-Time manufacturing has a lot to teach us about how to behave in our business dealings. As a continuation of the previous article, 6 Lessons From Japanese Business Culture, the following is a list of seven additional lessons we can learn from the Japanese.
1- Personal relationships forge bonds
In Japanese business culture, it is not uncommon for details of a particular deal or contract to be fluid and made up as the business arrangement progresses. The key to operating in this sort of manner is to have some sort of past experience or familiarity between the two parties to draw from. In other cases, the relationship may be based on a recommendation from a mutually respected party.

Business is conducted as if each party has a moral responsibility to one another, and a will to see the arrangement to the end. A contract or deal is generally just a summary, if it is put in writing at all.

What it teaches us: In Japan, maintaining good personal relationships gives you a credibility that will be crucial for future business dealings. Those who have worked with Japanese companies are aware of the difficulty of breaking into the market. However, once you successfully conduct business with one Japanese company, others will be more willing to deal with you.

How we can adapt it: Negotiate in good faith. While it is unlikely that people of Western society will ever choose to go without making contracts for business arrangements, try and find compromise in the “gray areas” that are not explicitly defined in the agreement.
2- Defer to the group and respect its decisions
Japan is very much a society that emphasizes “we” as opposed to “I.” Important decisions are often discussed before they are acted upon, and membership into the discussion group is often limited to a select group of people.

Likewise, just as important decisions are reserved for the group, it is inappropriate to commend a particular person. To influence the group, you must first gain membership to it, and then, only when a consensus is agreed upon will a decision be made.

What it teaches us: Success is a group effort. Nobody can succeed on his own. The Japanese understand this and emphasize the need for everyone to work together. They prioritize a collaborative discussion process which may at times be a slow process, but in the end, it ensures that everyone has a voice and is humming the same tune.

How we can adapt it: One of the first keys in diplomacy is to hear people out. Too often Western business people appoint the hero leader who makes decisions and tells everyone what to do. This sort of top down approach does not take into account that the leader requires the collaboration of all his line managers in order for his business to function. The Japanese seem to understand this. For them, it is a team game. They make sure to maintain the team spirit by sharing any credit received. This ensures more dedication and unity among the group. Likewise, by giving credit to a group of people, there will be no jealousy or clashing of egos.

Remember not to single out a specific person for praise in front of others, and you will succeed like the Japanese.
3- Learn to spot the indirect terms
Just as the Japanese prefer to avoid confrontational situations, their speech and communication etiquette are construed in a manner as to avoid antagonizing their colleagues and counterparties.

Rather than directly address an issue, the Japanese prefer to hint at certain preferences. They may appear vague at times, but they take extra care to ensure that no one is angered or insulted by their actions.

What it teaches us: Japanese business culture emphasizes respect and courtesy. In fact, they will go out of their way to show that they are not imposing their will upon their associates.

How we can adapt it: To learn to spot the difference between politeness and a show of disinterest, you have to take the time to listen carefully for nuances in speech. Learn to slow down a bit and look out for clues that your counterparties are not as happy as you have assumed them to be. Often there will be signs of trouble before anything drastic happens.
4- Punctuality is a sign of respect
Japanese culture places a huge value on “kao” or face. The concept of “face” involves personal pride, reputation and social status. Any action that could cause a recipient to lose face is poisonous in the business environment, and is highly frowned upon.

To maintain good “face,” you must learn to show your utmost respect. The simplest way to let somebody see your high regard is to show up on time for any appointment. In fact, Japanese people often show up early.

What it teaches us: There are many things individuals of Western culture have grown desensitized to that people from other parts of the world view as important. Time is one of them. Japanese people view it as a huge disrespect if you are not considerate of their time.

How we can adapt it: Punctuality is a habit we should all adopt anyways, so improve your time management, giving yourself an extra 10 or 15 minutes of leeway time in your schedule.
5- Customer service is paramount
If you travel to Japan, you will be shocked by the number of professional greeters and helpers there to assist you in nearly every aspect of your stay. The Japanese philosophy is that superior service should be the norm and an integral part of your business relationship.

Since such service is part of the deal, gratuities are not expected and often will be politely declined.

What it teaches us: The pursuit of excellence is ingrained in Japanese business culture. Extra care and service are not extras that the Japanese have included for your luxury. Treating the customer well is a mandate they have taken to heart. Many Western cultures seem to lack this approach.

How we can adapt it: If you study the way the Japanese conduct business, you can probably find ways to improve the own service of your company. "Copy and improve" should be your mantra.
6- Maintain proper and regular correspondence
In Japan, it is far better to make a call and set up an appointment than to send a letter, fax or email. The personal time is viewed as a sign of respect for the other party.

The Japanese value long-term business relationships, so being a good correspondent is viewed with large importance in their culture.

What it teaches us: The Japanese take networking and relationship-building to the next level as they realize the value of a network.

How we can adapt it: Some of us are lousy at staying in touch with one another. We put the least amount of effort into our correspondence and sometimes it shows in the lack of strength of our business relationships.

Just like the Japanese, we should take extra care to go a little farther in our correspondence with one another. Make it a bit more personal by showing that you are willing to take the time to connect.
7- Show hospitality
Japan, like many Asian business cultures, still maintains a habit of gift-giving. Be careful, however, to avoid the impression that you are bribing or trying to influence their behavior.

Make a point of offering the gift to the highest guest in attendance and, if you are the recipient of a gift , thank the other person profusely.

If you are taken out to dinner, kindly offer to pick up the bill. If the other party insists they pay, make a show of giving in reluctantly as this is deemed respectful.

What it teaches us: The Japanese way of hospitality is meant to emphasize that business comes second to personal relationships.

How we can adapt it: Treat the customer as more than a source of business. Focus on the relationship first, and the business will flourish as a result.

being culturally aware
In this multi-cultural world, understanding another culture’s business approach can help you be taken seriously in the workplace. Whether you are dealing with a Japanese client or a partner from a different part of the world, learning to be culturally sensitive can give you a step up from the competition.