3. Business practice in japan

The Japanese are relationship-focused, formal, very time conscious and reserved. It is extremely difficult for a foreign business to establish itself without first generating a trusting relationship that enables it to gain entry through a joint venture in this country. The Japanese may rely more on their feelings than on facts, because they tend to be more subjective than objective. Since they strive for consensus within their groups, individuals are prepared to change their position for the sake of group harmony.

The Japanese value hard work and long hours. Business hours are from 8am- 6pm, and although Saturday duties do not exist everywhere, many executives go in then to get themselves noticed. It is considered respectful to leave the office after the boss.

Foreigners sometimes interpret the Japanese dismissal of facts and decision-by-consensus process as evidence that Japanese belief in their superiority to others. The non-transparency of their decision-making and their tightly controlled communicative behavior complicates this situation with unknowing foreigners.

A “poker face” that means “an expression on the face that shows none of your feelings” is of great use in Japan. The Japanese dislike strong public displays of emotion. If you show shock or anger during business negotiations, they will believe that you lack self-control and are questionable as a business partner.

The Japanese have sometimes been characterized as averse to all-controlling written contracts. Rather, certainty comes from “giri”, a system of intertwining social and moral obligations. In the event that parties under “giri” should fall into a dispute, then they will adopt a conciliatory and flexible concessionaire approach. The presence of “giri” might be incompatible with the nature of litigation and operate to inhibit a resort to legal resolution of disputes. Differing attitudes toward contracts can cause even more confusion. Agreements of confidentiality are vague. Contracts are not perceived as final agreements. You or they may renegotiate. For instance, the custom of “naniwabushi” allows the Japanese to request a change in a contract if the terms become onerous or unfair, which is not acceptable in Western cultures. A business contract in Japan is like a wedding vow: it means more in spirit than in substance. If the relationship is not working, rereading the contract will not help. The Japanese are insulted when an executive brings a lawyer to negotiations.

As the Japanese get to know and trust you, they will reveal their real feelings and be more direct and honest. This often happens not in the office, but in social events. It's important to take every opportunity to attend these. Next you can practise consistency in thought and action by doing what you say and showing loyalty and respect - to build still more trust.

A positive, persuasive presentation works better with the Japanese than does a high-pressure, confrontational approach. To get the ideas accepted one should seek “adoption” by senior Japanese managers. In a hierarchical structure such as theirs, it is important to address questions and suggestions to the next level of management, who will then direct them to the appropriate sources.

A Japanese team is a group of individuals who work together for the wider good of the company. The group is therefore superior to individual wishes. Harmony is crucial. One should avoid open confrontation, or criticizing superiors or subordinates. Allow all parties to save face, and reject nothing bluntly. The preservation of harmony is another feature of Japanese office life. The Japanese are extremely sensitive to what others think of them, are obsessively polite and will shower you with compliments. The team leader will make decisions, but will not act independently without internal support. The process tends to be slow to allow for consensus to emerge, and team members will be modest and self-effacing. It is important to keep to schedules, but deadlines can be extended if necessary.

Japanese women tend to have separate lifestyles to men, and control the household. It is still usual for them to give up work on marriage, and promotion for them is therefore restricted as they are not expected to stay in the workforce.

Japanese offices are quieter than continental ones. The Japanese are happy with silence, so just remain aware and soak in what's happening.

Appointments. Visiting party should be punctual at all times. Tardiness is considered rude. Making an appointment a personal call will be more effective than sending a letter. Moreover e-mail requesting an appointment might go unanswered. The Japanese usually use the initial meetings to get to know you, while at the same time asking to hear about your proposal.

Before you enter a meeting prepare a short introductory statement explaining why you're in Japan and how long you'll be there, the sort of people you're seeing, and your previous contact with the country. Decide on the five or six crucial points you want to make, and repeat them at each encounter. The Japanese believe that everyone who is in the loop needs to be at meetings. The most senior person may say little, but to learn who that figure is, note who is served tea first!

The younger members of the team should generally remain quiet and defer to their seniors during the meetings. Their real job will be to go out drinking with the Japanese team's young executives at night. The Japanese may ask international visitors many questions— including information about your job, your title, your age, your responsibilities, the number of employees that report to you, etc. They need a lot of information in order to decide which form to use when speaking to you.

During holidays, banks and offices close, although some stores remain open. During three weeks of the year (New Year's holidays, December 28 to January 3; Golden Week, April 29 to May 5; and Obon, in mid-August), many people visit the graves of their ancestors. Conducting business and traveling are difficult during these periods.

When writing the date in English, the Japanese may write the year first, then the month, then the day (e.g., December 3, 2010, would be 10.12.3 or 10/12/3) or they may write the day first, then the month, then the year (e.g., December 3, 2010, would be written 3.12.10).

Negotiating. The Japanese negotiating style is impersonal and unemotional. But emotion lurks just below the surface, and logic alone will not work - the Japanese manager must like and trust you.

The Japanese negotiate in groups, usually in a team containing executives of different age ranges. A visiting team should have at least one senior member, and everyone must be sure to treat him with deference. The Japanese consult at all levels within a group before they reach the decision making stage. They then seek universal consensus to arrive at a decision. Japanese managers like to understand the background and reasons for decisions and proposals. One should be patient - they may be slow to decide, but once they do you can expect fast implementation. Japanese managers rarely give direct orders: they hint at what is needed instead. Courtesy for the other person controls all their dealings. They use polite, indirect forms of English such as the passive voice: “The company has decided”, rather than, “We have decided.” They also rely on impersonal forms of speech: “It has been found necessary to cancel...”: rather than, “We are canceling...”. The Japanese desire to save face becomes evident when they deliberate carefully and avoid taking risks in their statements and actions. Be patient in trying to get decisions: even routine issues may be subject to extensive discussion. Look for a contact who can keep you up to date informally on progress.

It is useful to get Japanese executives away from their home base. In Japan, they can wait you out, hoping that you will agree to a disadvantageous deal because you are anxious to go home. The Japanese often agree to hold negotiations at a midway point. For example, when negotiating with North Americans, the Japanese often agree to hold meetings in Hawaii.

A Japanese response “I'll consider it” may actually mean “no.” Negatively phrased questions typically get a “yes” if the Japanese speaker agrees. For example, a question such as “Doesn’t Company A want us?” will be answered “yes” if the Japanese thinks that Company A indeed does not want you. In English, the answer would be “No, they do not want you.” Incorporate the words “I'm sorry “ into your vocabulary when you go to Japan. However, do not be ingratiating out of fear of offending; just be polite.

Negotiations are begun at the executive level and continued at the middle level (working level). One should choose the intermediaries carefully, because the Japanese will feel obliged to be loyal to them. Do not choose someone of lower rank than the person with whom he or she will be negotiating. Intermediaries should not be part of either company involved in the deal. Use an intermediary to convey bad news. Using a Japanese lawyer rather than a Western one indicates a cooperative spirit.

Do not make accusations or refuse anything directly; be indirect. At work the Japanese are very serious and do not try to “lighten things up” with humor.

When working with Japanese who know English, or when using an interpreter, be patient. Speak slowly, pause often, and avoid colloquialisms. Your interpreter may seem to be taking more time with the translation than you did with your statement; this is because she or he is using lengthy forms of respect.

The negotiation process can be divided into four phases: 1) building a good relationship; 2) talking about the business deal; 3) persuading, bargaining, and making concessions; and 4) making a final agreement, In Japan the first two phases take the longest, especially since personal trust and mutual understanding are important to good business relationships. Thus the last two phases, bargaining and final agreements, come at the end of a long process of building a relationship and talking about the proposed deal. In Japan concessions are made only at the end of the negotiation process, After all the possible details of the business deal have been carefully discussed, the two parties begin to bargain and make concessions. They quickly come to a final agreement. Contracts do not play a central role in negotiations in Japan. In fact, a contract is usually a small detail at the end of a long process of negotiation. After all aspects of the deal have been discussed and all decisions have been made verbally, a contract is written up reflecting the decisions. A contract is presented at a meeting only after both parties have carefully discussed the final agreement.

In Japan, silence can be part of a conversation. If someone wants to think about an offer, silence gives that person time to consider it carefully.