2019.10.15
How Japanese can be globalized?
Q: Why Japanese management overseas market had been struggling in the Western market in late 90s and early 2000 ??
A: According to Mr. Inamori, those Japanese companies who tapped Western market simply did not understand the cultural differences, maintained somehow Japanese styles and tried to implemente Western practice there. At the end of the day, the management got stuck in the ambiguous style where both culture and management concepts were incomprehensively mixed.
Q: What are the major differences in management styles between Japanese and those of non-Japanese (Westerns)?
A: He mentioned, under Western style, top-down approach, capability oriented, the high reward system, contract-based commercialism, clear communication, and manualized procedure, those are distinct features of Western style business practice and management. On the other hand, a committee system, serving-year-respected culture, standardized salary structure, trust based society, unclear communication, and creativity -encouraged work procedure, those are typical features of Japanese management style.
Q: Based on those differences, what style does Mr. Inamori suggest for Japanese to seek in overseas market?
A: Mr. Inamori encouraged us to develop and conduct a sort of Hybrid: taking localized practice based on Japanese culture and philosophy. This would be more advanced system that we Japanese to be look for.
Q: Could you tell us examples?
A: As for the CEO of Kyocera US, before, an American guy took this position. That American guy asked Mr. Inamori insistently to have a meeting. Mr. Inamori during the meeting clearly stated, “Look, I have observed all of your behaviors. You mentioned what Kyocera US achieved now is only due to your own efforts and asked me to raise your salary. This is US business style, however your egoistic attitudes are not acceptable based on our philosophy :Conduct right things as a human being. I fire you because having egoistic leader like you would not benefit my staffs. ” For this case, Mr. Inamori simply brought Japanese mindset, creating harmony, do not act based on egoism, always think others.
Q: Howe was the next CEO, was he a same type of person as the previous?
A: Mr. Inamori appointed the accounting manager as CEO. That American guy well understands Kyocera philosophy and helped to build up a market practice based on the philosophy. He mentioned, “I myself am Christian however, the value and ethical motto underlying Kyocera philosophy are exactly the same that I have been trusting and valuing for my lifetime. Thus, I feel that we can share our values comprehensively as a corporate. ”
Q: Is there another example of Hybrid management?
A: When Kyocera was about to acquire an American assembling company, no one on the management team was against Kyocera. Rather they welcomed Kyocera. Because they know in the past Mr. Inamori demonstrated his compassion in their contract review. Even though an unfavorable condition for Kyocera, Mr. Inamori accepted that term to show his respect to the counterpart. Mr. Inamori said M&A is a sort of marriage, accepting your partner and how we can make our partner comfortable and fulfilled, that is the fundamental point of M&A.
Q: So what is the lesson learned from this episode?
A: Even under different culture, Japanese business philosophy works and can be integrated into their market practice. As far as we clearly demonstrate our value, some feel comfortable to follow our ways and we can create a good global team.