Want to do Business in Japan?

Japan has the world's second largest GNP and is the world's second largest market accounting for 60-70% of the economy of Asia. It is the source of a great deal of advanced technology, much of it built into Japanese consumer products owned by consumers throughout the world. Japan has 50 million mobile phone users (40% of the total population) most with Internet access, while broadband technology is rapidly advancing on both the home and business fronts. Total sales through mobile e-commerce reached $500 million in 2000 with projections of $10 billion in sales by 2005.

The Japanese have the justified reputation of being the world's most demanding consumers who are satisfied with nothing less than the very highest standards of quality and service. The Japanese market is therefore the benchmark for any company aiming to succeed in international business.

Despite its ultra-modern, Western appearance and technological sophistication, foreign business people often find that on closer acquaintance, Japan is in many ways the most culturally distinct advanced society they will have encountered. This is part of its fascination. Too much is sometimes made of this but is does mean that time spent acquiring the necessary cultural awareness and knowledge needed to adapt one's style and approach to fit Japan is a necessary investment. Key aspects to be aware of are the strong group orientation of Japanese and the distinction they make between tatemae, the face which Japanese present in public to maintain harmony and avoid embarrassment, and honne, one's real feelings or the actual situation.
Japanese business is relationship-based on the assumption that it is the relationship which makes the business possible. Since Japanese are instinctively wary of those with whom they have no relationship, whether Japanese or foreign, it follows that building a relationship takes time and requires patience, persistence, and perseverance. These are among the qualities most admired and respected in Japanese business and they are needed in abundance by both companies and individuals in Japan if they are to succeed.

The hallmarks of the Japanese approach to business are tireless collection and collation of information, thorough preparation and meticulous attention to detail. Foreign companies in Japan should do their best to match this and should also have clear objectives and a well thought out strategy for the market. Time-consuming and often very costly mistakes have been made there by foreign businesses which have failed to gather sufficient information and skimped on preparation and planning. "Winging it" or "playing it by ear" are sure recipes for disaster. Those who do their homework thoroughly will find a vast amount of information readily available from official and commercial sources as well as many experienced consulting companies to call on with long experience and specialised knowledge of Japan's particular markets. Being prepared also means knowing one's company, products and markets inside out. Those who do not cut a poor figure in Japanese eyes even if they can do business in Japanese.

Formality and formal politeness are much more important features of Japanese social and business life than in most other societies. Their observance ensures respect for hierarchy, the smooth functioning of social relations and the elimination of uncertainty and any possibility of public embarrassment. Knowing and being able to observe the basics of etiquette are therefore important for the incoming business person wishing to make the best possible impression. First encounters in business, for example, must always begin with the formal exchange of meishi or name/business card. Any business visitor to Japan therefore needs to take an ample supply (anything between one and two hundred) of professionally produced cards. They are a key element of the public face not only of the individual but of their company. On the sophisticated and often involved protocol for meetings, entertainment and other areas of business, it is best to take expert advice.

Japanese companies are collective organisms whose individual members are with the company for most if not all of their working lives. Decisions are made after an exhaustive period of information gathering, consultation and discussion (nemawashi) among all relevant parties in the company. This takes time and will involve repeated requests for information as well as great patience from a prospective business partner. It also underlines the necessity for any business partner of developing and maintaining good relationships with as wide a range of people as possible in their Japanese counterpart.

Being able to speak and do business in Japanese is always an advantage, not least because it shows an unquestionable commitment to the market. The language is also an important window into Japanese culture and without the ability to read it, foreigners have the unnerving experience of being functionally illiterate when they arrive in Japan. However only a minority of foreign business people will have these language skills while all Japanese have some knowledge of English and some a very good command of it. It is therefore certainly possible to do successful business through the medium of English in Japan. Native speakers of English however need to now how to adapt their language in order to communicate effectively with second-language speakers of English like the Japanese. This involves much more than just speaking more slowly. And even when doing business mainly in English, every foreign business person should make the effort to learn some courtesy and survival Japanese and in particular the polite expressions and formulas which always lubricate social interaction in Japan. This will always be appreciated.
Whether business is being done in Japanese or English, all relevant printed information such as company brochures, product information and the like should be produced in Japanese and an interpreter, properly briefed, should be used at all important business meetings.

The economic and financial news coming out of Japan over recent years has seldom been positive but this should not be allowed to obscure Japan's massive strengths and the increasing opportunities it offers for successful and profitable business. Worth highlighting here is the genuine welcome now on offer to foreign inward investment in an economy where in the past it has deliberately kept it to a minimum. As a result foreign investment has been rising rapidly.

Graham Thomas was previously Head of the Briefing Office, School of Oriental and African Studies, University of London. He now provides a consultancy service to companies wishing to do business in Asia, specifically in Japan and China and for expatriate Japanese executives to manage non-Japanese effectively in Europe and the UK. May 2002

To find out more about our Working with Japanese, Japanese Language or Living and Working in Japan programmes, please email: info@farnhamcastle.com, or visit our website at http://www.intercultural-training.co.uk

Selecting & Developing the International Manager

How does an organisation identify and develop its international managers for the future?

This article looks at some of the issues involved in the selection & development of the global manager


Whether working in a 'Global' or 'Transnational' organisation, or simply one that exports to its customers from its home country, the successful international manager needs to have developed the competencies and personal attributes necessary to allow him or her to work effectively in an international and cross-cultural environment.


An environment in which they will be expected to interact, manage, negotiate, live and work effectively as individuals and in teams with people whose values, beliefs, languages, customs and business practices are different from their own, and in relationships where misunderstandings can lead to costly mistakes and even business failures.


Increasingly, organisations are looking for ways to develop their managers to handle this important dimension, and many are attempting to fill Board and other senior appointments with people who have a proven track record in successfully managing an international business.


The considerable costs that can be incurred when an international assignment fails means that organisations do need to develop professional and focused processes for ensuring that only the best people are selected and developed for such roles. Seldom is it possible to find a perfect match. A professional approach to the selection and development of international managers, however, can help avoid the problems that invariably arise from appointing people who subsequently become the 'Missionaries', 'Mercenaries' and 'Misfits' amongst international assignees, and who can do so much harm to the business.


The first step in this process should be to identify not the people but the competencies, motivation and personal attributes required for success. International assignments are so often filled as a 'knee-jerk reaction' with the most 'technically' competent and readily available person, and frequently someone who, until that point in time, had never really considered an overseas assignment as part of their career. Experience shows, however, that 'technical' competence, whilst important, does not of itself produce an effective international manager.


There is also the danger that, in their eagerness to take an international assignment or perhaps the fear of possible harm to their careers of being seen to refuse one, people will not think through the personal implications for themselves or for their partners or families. To compound this problem, organisations frequently offer inflated international remuneration and benefits packages to help 'convince' the individual that this is the right career move for them and leave them to sort out any 'personal difficulties'.


Planned process


What needs to be done, therefore, is for the organisation to clearly define their criteria for success at international, managerial, functional and personal levels and then select and develop potential international managers against these.


Whilst there are international competency models that have been developed to help in the selection and assessment process, it is essential that the one which is eventually used by the organisation reflects both the specific or various cultural needs of its markets and the organisation's culture, which sometimes can be in conflict. In identifying the personal attributes needed, it is also important not to assume that there is a single attribute (or personality) profile for all markets. For example, the person who is ideally suited, in terms of their motivation and personality, to work in one market, say the USA, may find it very difficult to work in another, say Germany or Venezuela.


Avoiding over-reaction


This assessment process should not be left until a vacancy arises. It should be ongoing and one through which people who are considered as high performers with international potential are identified as early as possible in their careers and then given the appropriate opportunities to develop their experience and skills in that direction. These should include opportunities to develop their experience and skills in that direction including the opportunity to regularly discuss their aspirations for an international career and, if appropriate, their family's level of support.


Consideration should also be given to planned exposure to the international side of the business through projects that require them to visit and work for short periods in the organisation's overseas operations, or with its customers. This would allow in-market senior managers to assess and provide feedback on how effectively, or otherwise, the person is able to work with the local team and in the different cultural environment.


Allow an informed decision


A further part of the process should be to give individuals the opportunity, with their partners if this is appropriate, to attend relevant country briefings and cross-cultural awareness workshops. This can help them more fully appreciate the opportunities and challenges of an international career and allow them to take an informed and objective view of what they might be letting themselves in for. In this way, there can be a process of self-selection which helps ensure that the people who eventually are offered and accept an international assignment, and their families are fully committed to it. Once committed in principle, the process might then include the use of international focused development assessment centres in which the in-company assessors themselves have a proven international track record and who can become mentors to people once they take up an assignment.


Having identified people with potential as international managers, and who are able and willing to take up international assignments, appropriate formal training should become an integral part of the process. Ideally this will include advanced management and functional skills training, and country briefings covering in some detail the historical, political, economic, social and business environments of the market(s) the individual will visit or be asked to move to. Also required will be cross-cultural awareness training to help them appreciate the values, beliefs and practices of the other cultures and how their own culture may be seen by people from the host culture.


Where appropriate, language training is also very important and should not be left until the person has to take up their appointment. Experience in this area shows that most people become so deeply involved with the operational task from the outset of the assignment that they can seldom find the time to acquire more than a basic social vocabulary in the other language.


In summary, a key strategic imperative in managing an international business must be to develop effective international managers. People who have the knowledge, skills, experience, motivation, personal attributes and cultural sensitivity that will allow them to create a sustainable competitive advantage through the ways in which they are able to interact and operate with people from other cultures.

The bottom line for any organisation, therefore, must be to identify, assess, select, develop and train their international managers against clearly defined criteria that reflect their markets and which fully support the international management needs of their overall business vision and strategy.








INTERCULTURAL BUSINESS TRAINING & ASSIGNMENT BRIEFINGS

Farnham Castle pioneered intercultural training and briefing and leads the field in terms of coverage; our programmes cover every country and every culture in the world; expertise, we boast the most extensive database of expert knowledge and experience available anywhere and quality of delivery and service, we count a large number of the world’s leading international organisations on our client list, many of whom have been working with us for over 20 years.Wherever you are operating, whoever you have appointed and whatever the role, we can provide individual and team developmental support to help your company work more effectively anywhere in the world.

http://www.intercultural-training.co.uk/index.asp

If you want further information on the training courses provided by Farnham Castle, please email: info@farnhamcastle.com