Japan Association of Corporate Executives (経済同友会) view on increasing non-Japanese students and employees to help Japan compete internationally

by Anna
Published on: October 22, 2012
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The Japan Association of Corporate Executives (経済同友会) published a paper earlier this month on global talent development in Japan and how to increase the participation of non-Japanese employees and students in industry in Japan.

This paper appears to only be available in Japanese at the moment, and you access the paper here: http://www.doyukai.or.jp/policyproposals/articles/2012/pdf/121005a.pdf

Overall the conclusion of the paper is that Japanese government, industry and higher educational institutions, despite stating the intention to increase foreign worker/student participation, do not have a viable strategy and action plan in place.

Here is a highlight of some of the recommendations made in the paper based on what each sector should do in order to increase participation of non-Japanese employees and help Japan compete more effectively in the global marketplace.

Government
– Develop a human capital strategy
– Set up cross-departmental teams in order to make best more effective use of limited budgets.
– Review the current immigration “point system” to position Japan so that it can attract top international talent more effectively.
– Improve the general infrastructure and environment to make it easier for non-Japanese people to live and work in Japan.

Industry
– Develop more transparent HR systems and policies that foster a fairer working environment for non-Japanese employees.
– Create more transparent career paths with more options to better retain non-Japanese talent.

Higher education institutions
– Be more proactive in promoting Japanese higher educations institutions abroad.
– Each institution should better clarify the benefits that they can offer foreign students and develop a strategy to increase foreign student numbers.
– Provide more foreign student support, financially and otherwise, to help foreign students with issues relating to living in Japan (such as finding suitable accommodation and Japanese language learning) and finding work after completion of studies.

In terms of the recommendations for industry, it is interesting to note that policies and processes are the main focus.  However, I also wonder if there was any discussion in terms of developing leadership that fosters team environments in which people of diverse backgrounds can work effectively together.  Aspects of corporate culture, such as long hours of overtime and rigid hierarchies of management, are also known to put off non-Japanese talent from coming to Japan so feels like this would also benefit from further discussion.

And, finally, interesting to note the scarcity of non-Japanese people on the very long list of committee members for this publication…

Reference
English language website for Japan Association of Corporate Executives can be found at http://www.doyukai.or.jp/en/

How Japanese organizations have overcome ambiguity in traditional Japanese culture – Toyota

by Anna
Published on: October 21, 2012
Categories: Japan
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The previous post outlined the problems of ambiguity in traditional Japanese culture and how it can work against the conditions necessary to create a learning organization that can adapt quickly to change. This post provides an example of one Japanese company in which a psychologically safe environment is fostered through a disciplined approach to a process that facilitates clear communication.

How Toyota has overcome ambiguity in traditional Japanese culture
Toyota is the Japanese company on which there is probably the most literature relevant to the learning organization question and is also a Japanese company that non-Japanese companies have tried to emulate.  While perhaps seen as an exception to the usual Japanese approach to learning and innovation, they serve as an interesting, large-scale example of learning within a Japanese cultural context.

Making it safe to bring bad news or concerns to the boss
Toyota is seen as having successfully created a learning organization culture that fosters a supportive learning environment within teams.  Specific examples that demonstrate that Toyota has developed a culture that reflects that of the supportive learning environment is the emphasis on open communication regardless of status or rank: “Employees feel safe, even empowered, to voice contrary opinions and contradict superiors…Confronting your boss is acceptable; bringing bad news to the boss is encouraged” (*1)

“Mieruka” (見える化) : Making tacit knowledge available to everyone
Another aspect that addresses the problems created by a culture of ambiguous communication is the way in which Toyota has made tacit knowledge explicit by documenting knowledge.  Toyota was able to improve communication by making a conscious effort to embed the “practice of converting experiential or tacit knowledge into an explicit form to be shared through out the organization” (*1)

Making tacit knowledge explicit through documentation is one way to overcome ambiguous communication and increase clarity of thought.  “Mieruka” (見える化) has become a  buzzword in Japan for various concepts and one definition of “mieruka” is this process of changing tacit information into explicit knowledge so that can be more easily communicated and shared.

Taking a disciplined approach to problem solving: Five Whys and A3 Reports
I had the opportunity to talk with a Japanese manager at Toyota in 2011 – when asked how he thought Toyota had managed to be so successful at creating the culture of a learning organization and fostering psychological safety to support clear communication, he mentioned the thorough embedding of Toyota’s problem solving process of the Five Whys and the eight step A3 Reports, also known as A3 Thinking (*2).

The considerable work that the founders of Toyota had done in ensuring that the company’s method of problem-solving was documented enabled the company to set up a training and development approach that ensures all staff are thoroughly trained in this approach and that all managers reinforce this training with their direct reports on the job on an ongoing basis.

One could say that, in this case, the process-driven approach of documenting and embedding a fact-based problem-solving approach has helped foster a supportive learning environment and increase psychological safety.

What examples have you seen where a simple process is employed to make easier to share knowledge or overcome ineffective cultural communication styles?


The next post on this topic of ambiguity in Japanese communication will be about a small Japanese company with only eighteen employees that has managed to achieve
eighty percent global market share with some of its products.  This company also has some simple approaches to address the problems of ambiguity in a traditional Japanese cultural context.

References
(*1) (Quotes from page 103 of) Takeuchi, H. Osono, E. & Shimizu, N. (2008). The contradictions that drive Toyota’s success. Harvard Business Review 86 (6), 96-104.
(*2) A thorough explanation of these methods with examples can be found in the following book: Liker, J. K. & Meier, D. (2006). The Toyota Way Fieldbook: A practical guide for implementing Toyota’s 4Ps. New York: McGraw-Hill.

 

Ambiguity in traditional Japanese culture and why it can be an obstacle for companies trying to internationalize

by Anna
Published on: September 30, 2012
Categories: Japan
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Following on from my previous post, I’ll be highlighting here one aspect of Japanese culture that can work against the conditions necessary to become a learning organization.

Learning organizations and psychological safety
As outlined in last week’s post, learning organizations comprise three basic components, one of which is a Supportive Learning Environment.  A supportive learning environment can be described as an environment with the characteristics of psychological safety, appreciation of differences, openness to new ideas and time for reflection (*1).

The first element, psychological safety, as described by Professor Amy Edmondson, is an environment in which team members “feel free to express relevant thoughts and feelings”; individuals feel that it is safe to ask questions, request help and share ideas without fear of humiliation (*2).  This, in turn, means that for psychological safety to exist, there must be the conditions to support mutual clarity and clear communication.  In other words, in such an environment it is safe to ask direct questions and exchange opinions in order to check assumptions or expectations and reduce the occurrence of misunderstandings.
However, in contrast, if we look at traditional Japanese culture, we see that ambiguous communication is often encouraged, making it difficult to take a directly inquiring approach to gain clarity.

“Reading the Air” and ambiguity in traditional Japanese culture
On a visit to a city such as Tokyo, Japanese culture superficially appears to be have become westernized but in reality it has adapted certain western concepts while still retaining aspects of the traditional culture.  In a similar vein, Japanese organizations may appear western on the surface, but are said to have comparatively less-developed mechanisms in place to encourage diversity as a result of the historical company structures based on guaranteed lifetime employment, intra-company unions and age-based remuneration.

Japan is commonly known as having a high-context culture. This means that there is an emphasis on implicit, indirect and ambiguous communication. The Japanese language itself points to the emphasis on ambiguous communication with expressions such as “kuuki wo yomu” which literally means “to read the air” and refers to the ability to understand a situation from the atmosphere without access to explicit information.  Another expression “ichi wo kiite, juu wo shiru” literally means “know one from hearing ten” and refers to the ability to infer details when only given part of the story.

A further Japanese concept, “sasshi” also reflects the emphasis on developing knowledge without inquiring to gain further detail: One academic, Haru Yamada, interprets the concept of sasshi as “The process of anticipatory guesswork required to fill out each other’s communication … a strategy where players try to understand as much as possible from the little that is said”. (*3)

Psychological safety, clear communication and globalization
For Japanese organizations trying to expand globally in order to survive, a culture based on “reading the air” is no longer an efficient way to help employees work together to respond to the increasingly frequent and unpredictable changes in the international marketplace.

In particular, for Japanese organizations hiring more non-Japanese people in their main offices in Japan, conditions supporting psychological safety and clear communication make new employees feel that it is safe to inquire in order to better understand the company culture and ways of working. It also facilitates the open discussion of mutual expectations and, hence, reduces inefficiency arising from misunderstandings.

Psychological safety as an approach to reduce high turnover rates
Given that some Japanese organizations are reporting concerns about the low retention rate of non-Japanese employees, one solution may be to start from the point of increasing psychological safety and encouraging open and clear communication.

If you are interested in finding out how well your team scores in terms of psychological safety and other characteristics of a learning organization, why not try the free and anonymous Learning Organization Survey developed by Harvard Business School?  You can access it here: http://los.hbs.edu

The next post will provide some examples of Japanese companies that have come up with some simple ways to overcome the problems of ambiguity in traditional Japanese culture.

 

References
(*1) Garvin, D. A., Edmondson, A. C. & Gino, F. (2008). Is yours a learning organization? (Interview with David A. Garvin & Amy C. Edmondson) Harvard Business Review Magazine March 2008. Link to original article can be found here: http://hbr.org/2008/03/is-yours-a-learning-organization/ar/1
(*2) Edmondson, A. C. (2012). Teaming: How organizations learn, innovate and compete in the knowledge economy. San Francisco, CA: Jossey-Bass. Link to this book on Amazon.com: http://www.amazon.com/Teaming-Organizations-Innovate-Compete-Knowledge/dp/078797093X
(*3) Yamada, H. (1997). Different games, different rules: Why Americans and Japanese misunderstand each other. Cary, NC: Oxford University Press.  Link to this book on Amazon.com: http://www.amazon.com/Different-Games-Rules-Americans-Misunderstand/dp/0195154851/ref=sr_1_1?s=books&ie=UTF8&qid=1348388582&sr=1-1&keywords=Yamada+why+americans+and+japanese+misunderstand

Why being “global” in Japan is not just about English language skills

I had the opportunity to attend a symposium on global talent development last week in Tokyo.  “Global Talent Development” or “Guro-baru Jinzai Ikusei” (グローバル人材育成) has been the business buzzword for the last couple of years among Japanese companies struggling to find a way to help their businesses successfully expand globally against the background of a dropping birth rate and a Japanese economy slipping behind its Asian neighbours.

“Global personnel” or “globally-minded personnel” tend to be defined in Japan as individuals who, (a) are able to communicate effectively in an environment of diverse views, (b) can demonstrate effective leadership in order to achieve a mission as part of a global strategy and, (c) have the knowledge and ability to manage overseas offices outside of Japan. (*1)

There is a tendency in some Japanese businesses to interpret “global personnel” simply as individuals skilled in English language and with experience working in different cultures.  This has resulted in most Japanese companies being quick to set up English language training and increased international assignments for Japanese staff. 

In addition, Japanese companies are also hiring more non-Japanese staff but are struggling to understand how to successfully bring non-Japanese employees onboard.  Although Japanese companies are shy about revealing figures on retention rates, my informal chats with HR managers at Japanese companies and some publicly available information indicate that high turnover rates are becoming more of a concern.(*2)

My belief is that Japanese businesses are struggling not simply because of employees with lack of English language skills, but rather because traditional Japanese culture works against the characteristics that are required for a company to adapt in a global environment. That is, in order to adapt to a more rapidly changing international environment, Japanese organizations need to be able to develop a workforce that is better at learning and adapting to new circumstances quickly.  This means that organizations need to be better at becoming “learning organizations”(*3)

So what does being a learning organization mean? In short it means,

(a) Creating a supportive learning environment that allows for appreciation of differences and openness to ideas.
(b) Development of processes that support learning and experimentation,
(c) Demonstration of leadership that supports learning (*4)

However, traditional Japanese culture can make it difficult for some organizations to put in place these fundamental aspects of a learning organization.

I’ll be writing further on this topic and expanding on the specific aspects of Japanese culture that are obstacles to creating a learning organization and practical steps to take to overcome these obstacles.  I look forward to sharing ideas and hearing how your organization is addressing the challenge of global talent development in Japan.

References
In case you are interested in reading into exploring this topic in more detail, I have summarized the main resources I used for this article below.

(*1) Akisato (2008) Kyuumu no kadai: Nihon kigyou wa guro-baru jinzai wo donoyouni ikusei subeki ka. [An urgent task: how to help Japanese businesses develop global personnel] Kigyou to Jinzai, December 2008. 4-9. Link to original document in Japanese here: http://www.global-jinzaiikusei.com/img/0406.pdf
(*2) Japan Society for the Promotion of Machine Industry – Economic Research Institute. (2010). Monozukuri kigyou ni okeru gaikokujin kenkyuukiahatsusha no senryakuteki katsuyou [The strategic application of foreign researchers in the manufacturing sector]. Kikai Kougyou Keizai Kenkyuusho H21-32A. Link to summary of paper in Japanese can be found here: http://111.68.148.178/HP/H21_houkokusyo/jspmi_21-3-2A.pdf
(*3) Senge, P. M. (2006). The fifth discipline: The art and practice of the learning organization. (rev. ed.) New York: Doubleday
(*4) Garvin, D. A., Edmondson, A. C. & Gino, F. (2008c). Is yours a learning organization? (Interview with David A. Garvin & Amy C. Edmondson) Harvard Business Review Magazine March 2008. Link to original article can be found here:http://hbr.org/2008/03/is-yours-a-learning-organization/ar/1

Anna - September 17, 2012 - (0)
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