Embed Size (px)
Citation preview
1
Japanese Businesses Culture
and Singapore
01 April 2015
Michiaki Lee
Today’s Agenda
1. Global Expansion of Japanese Businesses
2. Japanese Businesses in Singapore
3. Current Challenges of Japanese Companies
4. Strengths & Weaknesses of Japanese Business Culture
Discussion with NUS students
5. Cross Cultural Understanding
6. Other Tradition
7. How Young Business Professionals Grow in Japan
8. New Leadership in Japan
9. Message from NUS Graduate
Short Video: Mr. Richard Chua, MD Yamato Asia
10. Summary
2
3
Introduction
Introduction – Who am I ?
Michiaki Lee
• Korean origin
• Born and educated in Japan
• Worked for US and Japanese companies
• Moved to Singapore in 2011
• HR Consulting /Corporate Education /
Leadership Development
4
5
Global Expansion of Japanese
Businesses
Global Macro Economy
6
Japan is the 3rd largest country in GDP
Increasing Overseas Businesses
Overseas revenue share is increasing
7
Japan Bank for International Cooperation N=625
Overseas Revenue of Japanese Companies
Reason of Global Expansion
8
Limited Japan domestic market growth
• Maturity of domestic demands
• Aging society and decreasing population
From “producing market” to “consuming market”
• Low cost labors outside
• Rapidly growing consumer markets in emerging countries
Borderless world
• Advanced information and communication technology
Expanding in Asia Region
9
Number of Japanese companies increase
Ministry of Foreign Affairs
10
Japanese Businesses
in Singapore
Why Singapore
English as a common language
Geographic advantage
Safety / Transparency
Talent acquisition
Showcase of other Asian markets
Tax incentives, etc
11
Strategic Focus on Singapore
12
Examples of “Singapore shift”
• Transferred metal resource trading HQ from Japan to Singapore
• Moved the headquarters of its procurement and logistics
operations from Osaka to Singapore
• Developed “SONY University” in Singapore
Strategic Focus on Singapore
13
Highly profitable functions are encouraged to
come in
R&D Production Assembly Sales Value Add
Service
Profitability
“Smile Curve”
Variety of Industries
14
Many consumer goods & services
15
Current Challenges of Japanese
Companies
10 Issues of Japanese Companies in Asia
16
1. Wage increase (71%)
2. Competitors’ market shares are growing (53%)
3. Skills and mindsets of employees (53%)
4. Quality of employees (47%)
5. Quality control (45%)
6. Difficulty of procurement (43%)
7. Difficulty in hiring future leaders (42%)
8. Price competition (40%)
9. Increasing material costs (40%)
10. No more room for cost cutting(40%)
JETRO Survey of Japanese-Affiliated Companies in Asia and Oceania
Challenges of Japanese Companies
17
Lack of diversity
• Many top managers are internally promoted
• Still few foreign talents – Lack of outsider viewpoints
Confidence in high quality
• Consumers may not need the “Highest Quality”
Too big to rapid change
• Conservative and careful decision making process
Different HRM concepts
• “Lifetime employment” “Seniority based management”
Organizational Structure
18
Most Japanese companies in Singapore are “Partially Localized”
Japanese Expats
Locally hired employees
Partial Localization
Japanese Management Driven
More Localization
19
Strengths & Weaknesses of
Japanese Business Culture
20
Discussions with
NUS Students
Fact - Students’ Voice (2014)
21
Most respectable Japanese company
N=74
Fact - Students’ Voice (2014)
22
Strengths of Japanese companies
N=72
Fact - Students’ Voice (2014)
23
Weaknesses of Japanese companies
N=75
24
Cross Cultural Understanding
Difference of Diversity
25
Singapore Japan
What does it mean? And why?
Difference of Diversity
26
Japan
Japanese
Non-Japanese
Singapore
Citizens PRs
Non-
Residents
Ministry of Justice, Singapore DOS
What is Culture ?
27
"that complex whole which includes knowledge, belief, art, morals, law, custom, and any other capabilities and habits acquired by man as a member of society.“(Edward Burnett Tylor)
Cultural Iceberg
28
29
“Hofstede's Cultural Dimensions Theory” Geert Hofstede (1928- Netherlands)
Five Dimensions
30
① PDI Power Distance
② IND Individualism
③ MAS Masculinity
④ UAI Uncertainty Avoidance
⑤ LTO Long Term Orientation
Desire
immediate
result
Take time
to get result
Risk taking Avoidance
of risk
Social gender
roles overlap
Gender roles
are clearly
distinct
Team oriented Individual
Oriented
All have equal
rights
Those in
power have
privileges
0 100 You Singapore Japan
Low High
PDI: Power Distance
31
Low Power Distance High Power Distance
• Respect for authority
• Students dependent on teachers
• Little discussion
• Many hierarchical levels
• Autocratic leadership
• Respect for individuality
• Teachers treat students as equals
• Much discussion
• Flat organizational structures
• Consultative or participative
management style
0 10 20 30 40 50 60 70 80 90 100
IND: Individualism
32
Collectivism Individualism
• Frequent use of “I”
• People ideally achieve alone and
assume personal responsibility,
• Vacations taken in pairs or even
alone vs. group orientation.
• Frequent use of “we”
• People ideally achieve objectives
in groups and assume joint
responsibility
• Vacations are taken in organized
groups of with extended family
0 10 20 30 40 50 60 70 80 90 100
MAS: Masculinity
33
Femininity Masculinity
• Career success
• Gender roles are clearly distinct
• Men are supposed to be assertive,
tough and focused on material
success
• Quality of life
• Social gender roles overlap
• Both men and women are
supposed to be modest,
tender and concerned with the
quality of life
0 10 20 30 40 50 60 70 80 90 100
UAI: Uncertainty Avoidance
34
Low High
0 10 20 30 40 50 60 70 80 90 100
• Avoidance of risk
• Organizations that have clearly
delineated structures
• Promotions based on seniority
• Lack of tolerance for deviants
• Need for predictability
• Risk taking
• Tolerance of differing behaviors
and opinions
• Flexibility
• Promotions based on merit
LTO: Long Term Orientation
35
Low High
• Emphasis on persistence
• Personal adaptability important
• Relationships ordered by status
• Save
• Emphasis on quick results
• Personal steadfastness and stability
Status not a major issue in
relationships
• Spend
0 10 20 30 40 50 60 70 80 90 100
36
Other Tradition
Hierarchy
37
Respect Seniors
People care age and position (Business cards, seating arrangement, etc)
Saving Face
Customer vs. Supplier Relationship (Customer is God)
Loyalty
38
Companies think employees as “Family”
“Lifetime employment”
Most employees don’t choose job assignments
“Keiretsu” (Treat group companies first)
Group Consensus
39
Bottom up consensus building
• Circulation of approval
Many people attend a meeting
• Consensus rather than discuss
Many reports
• Completed information for decision making
• Ho-Ren-So (Report/Information sharing/Consultation)
High Context Communication
40
Indirect Communication
• Many ambiguities
Indirect feedback
• Avoiding confrontation
Read Atmosphere
Important decisions are sometimes made at informal places
41
How Young Business Professionals
Grow in Japan
Education System
42
What are the differences?
Primary School
Secondary School
High School
University
6 years
3 years
3 years
2-4 years
Professional Career
Institute
43
Japanese children are taught to act harmoniously and cooperatively with others from the time they go to pre-school.
The Japanese educational system emphasizes the interdependence of all people, and Japanese children are not raised to be independent but rather to work together.
Education System
Student Life
44
What are differences?
• Study
• Zemi (Study Group)
• Bukatsu / Circle (Extracurricular activities)
• Baito (Part time job)
• Party
Singapore – Job Hunting Criteria
45
N=66 (Multiple)
Japan - Job Hunting Criteria
46
DISCO (Multiple)
Singapore - Leading Employers
47
Singapore's 100 Leading Graduate Employers (2014)
Company Industry
1 PwC Accounting & Financial Management, Consulting
2 EY (Ernst & Young) Accounting & Financial Management, Consulting
3 DBS Bank Banking & Financial Services
4 KPMG Accounting & Financial Management, Consulting
5 Singapore Airlines Logistics, Transport, & Supply Chain
6 Citi Singapore Banking & Financial Services
7 Microsoft IT and Technology
8 Ministry of Education Public Sector
9 Deloitte Accounting & Financial Management, Consulting
10 J.P.Morgan Banking & Financial Services
singapores100.com
Japan - Leading Employers
48
Popular employers in Japan (2014)
Company Industry
1 Sumitomo Corporation Trading
2 Mitsubishi Corporation Trading
3 Itochu Trading
4 BTMU Banking & Financial Services
5 Marubeni Trading
6 Tokio Marine Insurance
7 Mitsubishi UFJ Trust Banking & Financial Services
8 SMBC Banking & Financial Services
9 Mizuho Bank Banking & Financial Services
10 Mitsui & Co. Trading
Diamond
Question
49
How many times do Japanese change their jobs
during the age of 20-30’s ? And why?
Specialist vs Generalist ?
50
“T Shaped Career”
Marketing Sales IT Finance Operation
Job Scope
Specialty
Example
51
New Leadership in Japan
Emerging Japanese Businesses - Cases
52
UNIQLO (Fast Retailing)
53
Overview
• Fashion Retailer (6.2% of Japanese Market)
• Revenue USD11.5 Billion (37% outside Japan)
• 2,753 Outlets
Source: Website, 1USD=120JPY
UNIQLO – Success Factors
54
Strong Commitment to Globalize
Rapid Decision Making / Strong Execution
Local Talent Management
Risk Taking – “Willingness to Fail” to Learn
Learn from Other Players
Higher Performer, Higher Rewards
55
Overview
• Internet Commerce Platform
“Online Shopping Mall”
• Revenue USD5.0 Billion
• 98 Million Users
• 41,442 Merchants
• Portfolio
• Bank, Security Broker, Travel Agent,
Payment, Baseball Team
Source: Website, 1USD=120JPY
- Success Factors
56
Technology
M&A, Diversification
Speed
Consumer Reach
Win + Win + Win
(Rakuten + Consumers + Merchants)
Commit to Globalize (“No more Japanese company”)
• English as the primary language
57
Message from NUS Graduate
Short Video
58
Richard Chua (MBA from NUS)
Managing Director & Group CEO at Yamato Asia Pte Ltd
Previously worked at:
• Yusen Logistics
• EDB
• Standard Chartered Bank
Summary
Although big Japanese companies are slow to change, they commit to develop young high potential talents for longer term perspectives
New entrepreneurial companies don’t stick to old legacies
Japanese companies definitely need foreign talents (non-Japanese) to drive global business in future
Generalist career might be one option to explore career of future senior management
Important thing is to keep upgrading your skills as well as widening your sights (external focus) , and always understand your fair values
59
