Episode #293: Silence Is Golden In Business In Japan

Tension is a good thing in business, because this is how we get things done. There is an issue which needs solving and either we fix it ourselves or we outsource the specifics to someone else. There is a tension between scaling up and preserving oxygen, otherwise known as, “cash flow”. I have this issue all of the time. I want to grow my company, but I don’t want outside investors, so bootstrapping is required. That means the process is going to be slower than getting the cash in the door and diluting the ownership. There is tension between time, cost and quality. These three inputs cannibalise each other constantly. If we go for the higher quality, there will be cost and time to market considerations. If we reduce the cost, then the quality threshold may not satisfy our buyers. If we go for speed, we may need to pay more for production machinery or overtime and that impacts the cost equation. Given tension is a constant in business, you would think we would all be masters of dealing with it.

This element of tension though, when it arises when dealing with Japan, can seem a mystery. Western culture favours the quick, the agile business “backflip with pike” manoeuvre to maximise the market opportunity. We like the snappy rejoinder, the quick wit, the sharp off the cuff comment. We view these attributes as indicators of intelligence and articulation. We are constantly hustling, making things happen, pushing the envelope, forcing the issue. Japan is not particularly keen on any of these things.

While we in the West are fixated on the correct answers, Japan is considering what is the right question? Being the market follower is preferred here because that is the safer option, that is why precedent and track record are so highly valued. You might get fired for being too slow in your decision-making in the West, but the chances of that happening in Japan would be rare.

You really notice the temporal dynamic in meetings between foreigners and Japanese. The visiting businessperson feels pressure to come back with a deal and the Japanese feel this first meeting is the start of many needed before an agreement is possible. This is a basic negotiating mistake when trying to do deals in Japan. Instead of thinking about the sale, switch gears and start thinking about re-orders. How can we form a trusted partnership with this Japanese company and benefit from the lifetime value of the customer? If we think about it his way, then getting on a plane and coming here numerous times, is an acceptable commitment of time and money, because the time frame is now “forever”.

Speed decision-making is the hallmark of the competent Western leader. Seizing the moment, grasping the opportunity, “building the biggest ships, getting there first, sinking everything” bygone British Navy style strategy, still lingers long in corporate life. What about Japan? Have a long term plan, enrich it with kaizen style micro-improvements, build for the future, are all more appealing ideas than bustling around.

Sales is a noble profession, although often misrepresented by the unethical, unskilled and undereducated. The fast talking, hard driving successful salesperson is sent to Japan to ink the deal, to get the business. With no investment made in learning how to do business here, bluster and supreme confidence are brought to bear on the problem. The meeting room often has the sole Western businessperson seated across from a phalanx of buyers, a seeming rent-a-crowd of hangers on, from the other side. “Why are so many of them in this meeting, who is the decision-maker” and other similar irrelevant thoughts are racing through the foreigner’s mind. Actually, unless it is a founder led company, there is usually no one decision-maker and there will be a collective decision made somewhat later.

In the depths of the discussion, the foreigner asks a question. Silence. Not your average garden variety silence, but profound silence. With so many of them in the room you would think one of them could answer this question? The rapid pace of commerce in the West cannot tolerate this breakdown in communication. So more words are added to the question and to no avail, because the silence continues.

The bluster and confidence are rapidly withering and confusion sets in. The internal conversation is now, “What is going on here, I asked a simple question but I am not getting any answers?”. What is going on is that the other side of the table are deferring to each other, as to who should answer the question. There will be hierarchies in play, as the more senior people are the ones who should be speaking. Divisional responsibilities may be confused and as yet not clarified, so it is not clear who should speak. A lot of effort will be going in to consider what to say. A quick answer may be seen as flippant and not well considered. Concern about face will be on edge, in case the answer doesn’t sufficiently measure up or is deemed incorrect or trespasses on another division’s range of responsibilities and blurted out with no prior consultation.

We should just say nothing and wait. How long should we wait? The answer is for as long as it takes. I once visited a branch of the organisation, having heard that one of the female staff was having trouble with her much older male boss. I asked her how I could help. She didn't answer immediately and so I sat there waiting. Five minutes, twenty minutes, forty minutes, an hour went by with me just sitting there, silent, patiently waiting for her answer. In the end, she told me she couldn’t share her problem with me and that was that. I didn’t feel any time pressure though and that is how we should approach meetings with Japanese buyers. Silence is golden here, because everyone takes partnering very seriously. Don’t be in a rush.