Bridging the Gap: Navigating Cross Cultural Communication in Japan

In this updated article (original article published to LinkedIn in 2021), I would like to share some thoughts on the topic of communication, in the context of organizational dynamics, from the perspective of an American executive who has presented US companies to hundreds of Japanese companies over the past 9 years.  Since I wrote this article, I launched Gradient Consulting, a Tokyo based consultancy helping US AI startups with their Japan and Asia business. I decided to revisit this article as I help clients tackle the challenges of Japan and Asia cross-border communication. 

My hope is that this article can be thought-provoking and be helpful to foreigners doing business in Japan and Japanese business leaders pursuing innovation. This is not a comprehensive study or research based article. Instead the goal is to share from my personal experience and point to some thought leadership content that has resonated with me on the topic of communication which I believe is relevant to doing business in Japan and when discussing innovation in the country.

I’ve enjoyed learning more about Starbucks’ history and recently learned that Japan was the first international country it expanded to (coincidentally I am writing this article from a Starbucks at Tokyo Midtown in the Roppongi area while enjoying some Reserve coffee). When Howard Schultz returned to the company as CEO (after becoming Chairman in later years), he created a chief of staff type of role and appointed Michelle Gass who became the youngest member of his new leadership team. Of the many attributes he listed as reasons why he selected her, Schultz mentioned that Gass did not shy away from “respectfully disagreeing” with him. For business leaders in some contexts, it might be surprising that Schultz saw it as an asset that Gass had no hesitation to disagree with him. Yet it is surprisingly difficult to find both an organizational culture where a person is encouraged to respectfully disagree and a person who cares to take the risk to tell you what they truly believe. As Oscar Wilde said, “A true friend stabs you in the front.”

I recall a discussion with one of the Japanese members on the my Japan team  early in his tenure, “I’m glad you’re speaking up and challenging the idea, feel free to continue to do so”. He responded with a worried look on his face and wanted to clarify, “Please don’t misunderstand, I wasn’t challenging”. I put him at ease saying that he should not worry and that challenging is a good thing in an American business context, if done correctly. 

The topic of challenging the status quo, always questioning ideas, and allowing for a culture of open discussion and debate is one that has interested me over the years. I learned early on in my leadership journey, that high performing teams have a culture of open discussion and debate. The reason for this is because a team has a better chance of success if it fully taps into the brainpower of everyone as opposed to only those with the most senior titles or the loudest voices. 

This learning stuck with me, so early on I’ve encouraged a culture of open discussion and debate on my teams, in order to pursue the best thinking and to ultimately make the best decisions. It’s particularly interesting to examine this topic in the context of a Japanese or Asian business culture where there is a strong premium placed on hierarchy, respect, age, and harmony. 

Open communication and innovation in a hierarchical environment

To be clear, I think the emphasis placed on hierarchy and respect in Asian cultures is a beautiful thing. Hierarchy can be an asset when applied well, however as with any system one must be aware of the potential pitfalls and manage the risks accordingly. 

In a Sloan MIT Management Review article titled “The Truth About Hierarchy” by Bret Sanner and J. Stuart Brunderson, the authors point to a growing body of research that illustrates that the “right kind of hierarchy” can help teams become better innovators and learners. What exactly does the “right kind of hierarchy” mean? In hierarchical and high-respect cultures, we must employ tools and put the mechanisms in place to allow for innovation, which requires strong discussion and debate. 

Exactly what this looks like can vary from culture to culture and team to team, however the idea is to endorse a culture that allows for full communication of ideas. In the context of business and technology, this is done with the goal of innovation. 

As one example, the authors Sanner and Brunderson suggest an environment where team members can use their knowledge to “propose potentially wild ideas and challenge potentially sacred beliefs”. The authors add that these types of behaviors are “interpersonally risky in that they open up members to ridicule and social sanctions.” This kind of behavior is even more risky in a hierarchical and high-respect culture, where there are career risks to being too outspoken. 

In an incredibly hierarchical and high-respect culture like Japan, I use two simple tactics in order to achieve open communication. First, I constantly encourage the team to voice their thoughts, debate ideas, take risks, and even challenge my thinking and that of others within our company. So we are all clear on the reason for this, I add that the aim is to be a high performing team with strong communication. Second, when someone on the team does respectfully challenge, I often encourage them and point out that I appreciate the debate. I believe it’s important to let them know they are in a safe place. To further reinforce this culture of open dialogue, I highlight those who display  model behavior and publicly praise good examples (i.e. “role model” behavior). For example, a leader in our company shared with me that one of the Japanese team members really voiced their opinion on a global call, “I loved how he [the Japanese team member] was publicly challenging the presenter’s thinking and assumptions and wasn’t letting him off the hook easily. I was really impressed with how he pushed the conversation and didn’t back off.” I shared the positive feedback with this particular team member and we had a good discussion on how  this type of behavior is exemplified as commendable and respected behavior in an American business context. When I see model behavior, I make a point to highlight and praise it whenever I can.

Israel’s example, #1 globally in per capita innovation: 

Today’s competitive landscape requires that organizations maximize human capital in order to win, and leverage that for innovation. There is little room for inefficiency or waste in today’s competitive environment, the team must be firing on all cylinders. As described above, open communication precedes innovation. We can find a fascinating example of this in observing innovation in Israel. Dan Senor and Saul Singer in their book Startup Nation make the point that Israel represents the highest concentration of innovation and entrepreneurship in the world today. Israel has the highest density of startups in the world (one startup for every 1,844 Israelis). After the US, Israel is ranked second in companies listed on the NASDAQ, and the country only has 7.1 million people in the country. Eric Schmidt, former Google CEO and Chairman, said that Israel ranks #2 in the world for entrepreneurship behind the US. 

What is Israel doing right that the rest of the world is slow to adopt? As one possible explanation, the authors share their theory that it has to do with “tenacity, of insatiable questioning of authority, of determined informality, combined with a unique attitude towards failure, teamwork, mission, risk, and cross-disciplinary creativity” in Israel. 

Many times the best ideas and actions will not come from the top and we need a shift in business culture that encourages  that from each employee. This means drawing out the best idea and innovation from every employee and maximizing each contributor’s intellectual horsepower. Personally, I can attest that many times the ideas of people on my team are better than mine and we would be at a loss if they did not take the initiative to share them. 

One person in Startup Nation talks about his experience observing a business meeting in Israel and he comments on the intensity of the meeting and that “every question was penetrating”. Another point he added was that he found himself thinking, “Who works for whom?” This would be hard to imagine in many hierarchical Asian countries, however there are takeaways for us which I will discuss later. 

I believe there is a correlation to Israel being the global leader in per capita innovation and their business culture of open communication and challenging the status quo. I think there are lessons to be learned by government officials and business leaders around the world. The importance of this type of business culture seems to be increasingly noted, for instance I’ve heard government officials of some countries in Asia have given great attention to the Startup Nation and are giving serious thought on how to apply the lessons in their respective countries.

Innovation in Japan

Now let’s travel back to Japan. How does all of this apply in a Japanese business context? 

I absolutely love doing business in Japan (Tokyo has become my favorite city in the world) and am someone who wants to see Japan be a global leader again with regard to innovation. I believe it is important for the world, from a geopolitical and regional security perspective, to have a strong and thriving Japan.

From my humble perspective as an American doing business in Japan, there is some food for thought within this article for Japanese leaders. In today’s fast-paced, global, complex, and intensely competitive economy, I don’t think an organization can win in the long-term without a tenacious pursuit of innovation, which requires a culture of open communication and debate. The responsibility of business leaders in a hierarchical and high-respect environment could then shift to ensure the mechanisms and tools are in place to achieve fluid communication of ideas. As mentioned earlier, a culture of hierarchy and high-respect can be an asset, however it cannot come at the cost of efficient and effective communication.

As I observe great leaders of today who have accomplished much, I continue to find examples of leaders who create a culture of strong communication, ultimately in pursuit of innovation. A culture of always questioning ideas and allowing for a culture of open discussion and debate, is important for innovation and entrepreneurship in today’s global, competitive, and fast-paced business environment. 

I’m not saying that Japanese companies need to become like western companies. However, perhaps there are mechanisms or tools that can be put in place to help Japanese companies adopt open communication practices. To offer up a specific example, perhaps one practice is to have a designated time and place where it is safe to have a discussion on ideas and challenge information without any personal or career risks. 

Returning to the Starbucks example at the beginning of this article, Howard Schultz came back to Starbucks as a second term CEO in 2008, with the hope of reviving a struggling Starbucks that was in the midst of its worst performance ever according to many metrics. As he took the helm of the company he sought out a leadership team and was looking to maximize the human capital of that team. In the earlier example of Michelle Gass, Schultz highlights at least one of the assets he was looking for was “disagreement” so he could tap into the brainpower of those who thought differently from him. Though this is one single data point, I don’t think it is a stretch to say that this contributed to Starbucks’ pursuit of innovation and reinventing itself in order to successfully turnaround the company in subsequent years.