In the late-1990s, I was in Europe, working part-time for a training company that specialized in transport. Think: high-speed trains and subway systems. Over lunch at the beginning of the week, it was mentioned that a junior liaison position was being created and that maybe I would like to consider working for the company full-time. I had my own side-hustles that were doing well and wasn't really interested. "But wait.", came the reply. "We haven't told you where it is yet." Three weeks later, I arrived in Japan.
Tokyo is my favorite city on the planet, bar none. It was, is and always will be, amazing.
I was flown business class into Narita Airport. A major life experience when you're in your twenties. Having been picked up and brought to the Intercontinental Hotel which was to be my temporary home for the next few weeks, I was then left on my own to explore the city, along with an instruction to be at reception the next morning at eight. I said I was a little tired and suggested that perhaps nine would be better. That was when I was first given what I call 'the stare'. It's jarring when you first see it because it's essentially emotionless. An expressionless, cold, impassive, dead-eyed gaze. The man who had driven me from the airport, made sure I was comfortable, asked me about my family and my life had, in an instant, turned stone-cold. This went on for what seemed like an eternity until I blurted out that, in fact, eight would be fine. He looked away for a moment, then nodded in agreement, smiled, bowed and reminded me that his mobile number was on his meishi (business card) and to call if I needed anything.
Fast forward thirty years and I now know that had a waited a few seconds longer, my suggestion of nine would have been agreed to. This had been my first experience of Kōshō: the Japanese Art of Negotiation. A Culture Of Agreement Forged Over A Thousand Years
Japan, is a land steeped in tradition and renowned for its business acumen, and it has long been admired for its unique approach to negotiation.
From the intricate back and forth of give-and-take to the emphasis on building long-term relationships, Japanese business negotiation strategies are as much an art form as they are a science.
In this post, I'll delve into the key principles and tactics that define Japanese negotiation, offering insights into how they shape successful business dealings in the C-suites of Tokyo.
Harmony Is Key
At the very heart of Japanese negotiation sits the concept of Wa, or harmony. In traditional Western negotiations, we often prioritize individual interests, whereas Japanese negotiators seek to maintain harmony and preserve relationships throughout the process.
This emphasis on relationship building begins long before the negotiation table, with informal meetings and social engagements playing a crucial role in laying the groundwork for successful business dealings. I spent many hours at lunches and events in the run up (or not) to new business relationships. I speak a lot on this blog and in my free book about the importance of having aligned values and interests with your clients if you are focused on a long-term business relationship. This is especially true in Japan where trust and mutual interests are vital to success.
Reading Between The Lines
Negotiating in Japan has a preference for indirect communication and implicit messaging. There are a lot of unwritten rules and cultural lines that should never be crossed. Tolerance for gaijin (foreigners) exists but within limits. Do not send your loudest or most aggressive negotiator to Tokyo.
Rather than stating demands outright, Japanese negotiators often rely on subtle cues and non-verbal signals to convey their intentions and what they are looking for. This requires a very sharp ability to read between the lines and discern underlying meanings—a skill developed through years of practice and cultural immersion. It doesn't happen overnight, but there are many things you can do to ease the process for you and your Japanese clients. In It For The Long-Term Japanese negotiators approach things with a long-term perspective, recognizing that trust and rapport take time to develop. Patience is therefore a virtue, as negotiations may proceed slowly and deliberately, with ample time devoted to relationship and consensus building. I have seen negotiations for a service contract take months to put together, but that being said, nothing will be left wanting when the final copy is forwarded for signing.
Remember that you are laying the foundation for enduring partnerships and mutually beneficial outcomes. Respect. Trust. Transparency. Integrity.
These are the cornerstones for successful negotiation in Japan.
Group Decision-Making
Similar to the Gulf states, in Japanese business culture, decisions are often made collectively rather than unilaterally. Where Dubai has its committees, Japanese has its task-forces and development teams. It is important to note that multiple stakeholders may be involved in the decision-making process.
You might be surprised to find out at the end of a series of meetings that the quietest person in the room is the one who is making the final decision. He won't say much initially and it is only as time goes by, and trust and respect are built that you'll begin to understand the real dynamic of the group was not what you initially perceived.
Maintaining And Saving Face
This is, for me, the single most important element in the negotiation process in almost all places I have worked but it is especially true for Japan. The concept of 'face' holds significant importance in Japanese culture, representing one's social standing, dignity, and reputation. Negotiators are very careful to avoid causing embarrassment or loss of face, both for themselves and their counterparts. This may involve gracefully conceding points or respectfully finding creative solutions to preserve harmony and mutual respect. To cause someone to lose face is the ultimate transgression. Be very careful with this. Your apology will have to be very sincere, and very public. This is not a case of taking someone to one side and saying sorry.
Silence And Active Listening
Back to the hotel reception again.
Had I known then what I know now, the stoned-faced silence of the man in front of me was him taking time to genuinely and impassively take my suggestion on-board and see if it fit with the next day's agenda. Me changing my mind was in fact a slight loss of face for him, as it was essentially me saying: "You're too slow. Forget it. I'll be here at eight." Off to a great start, less than three hours after I had arrived in Tokyo! Silence holds a special significance in Japanese culture, often serving as a tool for reflection and contemplation. In negotiations, it is embraced as a means of conveying thoughtfulness and deliberation. The people you are negotiating with are skilled at leveraging silence to their advantage, allowing space for the other party to express their thoughts and concerns. Active listening is equally important, as the Japanese strive to understand the underlying interests and motivations of all parties involved.
Flexible Compromise
Up until this point, it looks like Japanese negotiation is quite rigid, but the truth is the opposite. The Japanese are the kings of compromise, and I have seen great lengths taken to find a creative way for both parties to achieve their goals - even up the point of one company investing money in a new company to manufacture a component that neither of the original parties were able to do without involving a competitor. Japan Then And Now
During my time in Japan, the country was in the midst of a massive economic crisis that lasted well into the early 2000s. Now, they are back to near 80s and 90s levels of economic success, and are a market you should seriously consider exploring. Consultancy. Property. Logistics. Online Sales. There is so much opportunity there. To recap: Say what you came to say. Stay quiet in the silence. Wait for the response. Take it and give respectful silence to contemplate it. Give your reply. They will remember you for it long after you have left. But, you won't be gone for long.
Oh, and one more gem of wisdom:
The most senior member of the team is the one who sits farthest from the door.
Until next time!
Six