What can I do to maximize the success of my office in Japan?

Hiring

Don't fall into the trap of hiring the people who speak and write the best English, regardless of other factors. While strong English skills are indeed a big plus at the office of a foreign company in Japan, employers should be sure that the background, skills and contacts of anyone they hire mesh well with the company's overall objectives. J-Seed can introduce its Preferred Supplier for assistance with hiring staff in Japan.

Domain Name In Japan

If you want to have your Japanese web site run by your subsidiary in Japan, make arrangements as soon as possible to register your domain name there. Some companies prefer to control all worldwide sites from headquarters, but the tools for doing so and the translation costs can be quite high. J-Seed can introduce a Preferred Supplier for assistance with domain registration in Japan.

Seal of Approval

Many foreigners are not aware of the degree to which Japanese business culture still relies on traditional ways of doing business such as the requirement for physical stamping by official seals rather than personal signatures. A person with bad intentions and possession of a company's seal can wreak havoc by committing the company contractually simply by affixing the seal. Therefore companies must hire carefully and allow access to the seals only to trusted and authorized individuals or have an intermediary such as J-Seed control access to the company seal.

Insider and Outsider (uchi & soto)

"Imagine two scenarios. In the first, representatives from an American company are negotiating with a party from a Japanese company. The American side proposes a new idea only to be met with an uncomfortable silence. They press for a response but get none. Only later, when the Japanese side has had a chance to confer in private and telephone other members of the company, do they receive an answer. By this time, the Americans are frustrated by the slow pace of their Japanese counterparts.

In scenario two, a U.S.-based global corporation issues a new worldwide personnel policy. The Japanese subsidiary does not complain, but neither does it act to implement the policy. Headquarters feels that the Japanese side is two-faced and disloyal. They cannot understand why the subsidiary doesn't act more like part of the company.

What is really happening in these two scenarios? In a word (or two): uchi-soto.

A Japanese person's sense of identity stems in large part from his or her affiliations with groups called uchi (`inside'). Anyone not in a particular uchi group is considered soto, or `outside.' Many interactions in Japan are influenced by the uchi-soto dynamic of the relationship.

The broadest uchi tie is that of being Japanese; non-Japanese are called gaijin, which literally means "soto person." Other uchi affiliations include family, university class, company, and work group.

Business dealings with soto people (whether foreigners or Japanese from another company) are generally polite, but always more ritualized than those with insiders. Information is not shared as freely, and a unified front is presented to the outside regardless of internal disagreements. The Japanese in the first scenario above cannot give a response to a new proposal until their uchi digests the idea and formulates its position. In general, the Japanese will not be ready to engage in give-and-take exploration of new points within a single formal negotiating session. For maximum results, Americans should allow time for the uchi to reach a consensus, or should explore less direct ways to introduce new ideas into the negotiation.

The corporation in the second scenario must accept a key fact: although the subsidiary will feel an uchi tie as part of the parent's company, by all other yardsticks the Americans at headquarters are soto. To strengthen the uchi aspect of the connection, the American side should consider investing greater effort to build close relations. Good relations will engender a sense of mutual dependence, which will manifest itself on the Japanese side in the responsiveness that the Americans seek.

See more cultural tips at the web site of J-Seed Director Carl Kay at: http://www.carlkay.com/newsletter.html. Kay has also published a book about Japan's service sector at www.sayingyestojapan.com which is winning acclaim as a source of advice for companies in service industries in Japan. Anyone, interested in entering the Japanese market, whether in the service business or a manufacturer, is well advised to check out the resources of the American Chamber of Commerce in Japan at www.accj.or.jp.

Ready to open a branch or subsidiary in Japan? Please download and fill out a brief our brief data sheet (branch or corporation) and send it to us. We will reply to you promptly regarding next steps.

Now that you've seen the details, if you want to be reminded again of the benefits of having an office in Japan, please click here.

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