Japanese Style in Decision-Making

Talking about problem solving or decision making suggests investigating many complicated cultural forces and measuring the effects of these forces on modern life. It also means using dangerous comparisons and explaining certain fundamental concepts.

To comprehend the Japanese style of problem solving, we should realize the difference between the west and Japan regarding the professional identity. In the west, the stress is on what a man or a woman does for a living, while in Japan the most essential thing is what organization you are working for.

There are several features of the Japanese environment that in some way affect decision making. To begin with, we have the ‘’you to you’’ approach developed from the westerners’ ‘’I to you ‘’ approach. In the west, the ‘’I to you’’ approach is based on both sides introducing their argument from their own point of view. Consequently, a conflict situation is constructed. On the other hand, the ‘’ you to you’’ approach in Japan is based on trying to appreciate the other person’s opinion. Accordingly, the direction of the meeting is a shared effort to reducing confrontation and accomplishing an accord.

A second characteristic is one based on ‘’consensus opinion’’ or ‘’bottom up direction’’. In Japan, great regard is given to opinions of everyone of all levels. So, a decision making can be created at the lowest level. Unlike the case in Japan, the western style in decision making starts from top management and often does not consult middle management.

A third feature is negotiations. It is based on communication and it aims at achieving harmony which places time in different perspective. It means that the Japanese consider the western deadline approach secondary to a thorough job. They are careful in their meetings and production and are always raring to execution.

So, how Nomura securities in Japan has succeeded to escape the paper log jam? First, in Japan there is very advanced computerization. Worthy of saying is that when Nomura switched to computers, the company did not free the seven hundred employees but they became securities sales people and some of them are leading sales people of the company. Second, the employees responsible for processing the transaction stay till the job is done. Their willingness to participate is always an important aspect of a problem solving.

In conclusion, willingness and intelligence are two major elements a company needs to succeed.

This article is adapted from a speech by Mr. Terasawa, presidentd of Nomura Securities International, Inc., before the commonwealth club of San Francisco.

Summerized by:

Sarah N. Maghraby