The Japanese Business Culture 

Appointment Alert

Normal business hours might be 9-5, but most people don't follow this, and meetings can frequently go later. Today, making appointments through email or phone is the most common practice. Most morning meetings will start at 10am or later, and afternoons usually begin at 1:30pm or sometime later. Lunchtime is generally 12-1.

When showing up at meetings, do try to be punctual. Give yourself some extra time for traffic if you are taking a taxi. Trains can be calculated very efficiently, but leave some time for finding the office once you get out of the train station. Tokyo, for instance, is not a grid, and it can be very confusing finding a place, even if you have a map.

Also, it would be a good idea to suggest what time a meeting will end before getting to the meeting - which would help set up a framework for the meeting (or get an immediate response that it needs to be longer or shorter). Don't expect the meeting to end on time, but at least you have some perimeters in which to work, as it’s as possible to have a one hour meeting as it is to have a five hour meeting.

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Business Dress

Before the turn of the century, I would have recommended very formal business attire with a white shirt and dark colored suit. In the banking and finance industries, this is generally still the norm. But times have changed and with those times so has appreciation for variations in material and color and fashion overall. Certainly, when meeting somebody the first time, I would still recommend wearing nothing that stands out too much. Many foreigners tend to sport a showy tie - once you get to know the partner/customer better, perhaps that will be fine, but not for initial discussions. It's not necessary, though, to start with a white shirt, as any other color that’s not too flashy would also be fine. "Casual Friday" has been implemented in many places, but unless you know the people well, don’t take a chance.

One of the recent prime ministers, Koizumi, had even advocated not wearing neckties in the summer, in order to save on air-conditioning costs, and this has continued! Thus you will find a good number of business people wearing short-sleeve business shirts with no tie and no jacket. Nevertheless, it's not recommended you try this on the first meeting, as some companies follow the policy and some don't. If they are not wearing a jacket, then after greetings are done and you sit down, you may politely ask if it's ok to remove your jacket as well. Don't take off the tie of course, unless they urge you to!

For women making visits to Japan, it would be wise to stick with a formal outfit in order to try to win over respect. Don't wear too much jewelry or makeup. Dressing too casually might catch the other partys' eye, but it won't have him respecting you, which is a challenge in itself in the Japanese culture. You want your Japanese counterpart to take you seriously, so dress as you would at a board meeting.

For social events, it totally depends on what kind of gathering and where it is. A formal party will have you sticking with the suggestions above. For a non-formal outing, dress conservatively, but relate your choice to the destination.

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First Name or Title?

It is the general norm to add '-san' to the end of the last name for all people you meet. First names are rarely used except when people become very good friends. The only problem is it wouldn't be strange to have several Suzuki-san's in the same room. Then it's up to you to keep it straight by remembering who is who, but still not using their first names.

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Gift Giving

At business meetings, it's not uncommon for each of us to present each other with a company gift or something that represents our culture. This exchange can take place at the beginning or sometimes even at the end of the meetings. I've received pens, folding fans, toiletry cases, calendars, and more. I've often given things representative of the company I work for, or of my country. Also good alcohol or name-brand items will work well. Use some common sense and there won't be any issues. Try to wrap it if possible in a modest wrapping. It's the thought that counts.

If there happens to be a very senior person in the meeting with his subordinates around him, then it would be wise to present a bit nicer gift to the senior person only, and the lesser gift to each of the subordinates. It is a sign of respect for his position.

As when receiving business cards, receive the gift with two hands. Also present the gift to your counterpart with two hands.

Just in case some day, though, you end up getting invited to a wedding, please remember to make sure the tie/bow on the present doesn't open too easily. If it does, it signals the potential for a quick divorce. So yes, various superstitions still do exist.

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Let's Make a Deal!

Connections and relationships are golden in Japan. It doesn't necessarily get you the deal up front, but it gets you in the door, which can be the hardest step of all. In order to cement those relationships, it does require effort. Keeping in touch, a dinner or karaoke from time to time, holiday cards, maybe golf and more, depending on the type of relationship, can all be prerequisites to a successful long term partnership.

Having a dual language business card is certainly helpful - English on one side, Japanese on the other. Not having it won't shut you out, but it does show an effort up front for doing business in Japan, and the Japanese counterpart will take notice. Don't cut corners on the fonts though. Either do it right and make it look nice, or don't do it at all.

When exchanging business cards, generally the upper level members will exchange cards first followed by others in order of seniority. The business card is to be presented with two hands, then let one hand go to receive your counterpart's card, and then put two hands on the counterpart's card taking a good look at it. Don't stuff it in your pocket or wallet at that moment. Keep it in your hand and manage to do this as you go around the room exchanging cards. Then when you sit down, try to order the cards in front of you so that you can start trying to remember a name, title and face. Be very careful to store your cards away at the end of the meeting. Dropping a card on the floor is a sign of disrespect!

When sitting at meetings, it's important to address your counterparts in a professional manner. That means no slouching and crossing of legs, while generally keeping arms on the table. If you make yourself look too comfortable, it can have an effect of lacking respect. It doesn't mean you have to lean in somebody's face, but just don't overdo it in either direction. Remember, Japanese society is all about modesty, keeping the 'wa' (peace), and fitting in.

When entering a meeting room, you as the guest will usually be sitting on the farthest side of the room. Let the most senior members sit in the middle with the less senior ones on the ends. Don't be surprised if many, many members from the Japanese company attend. Every department wants to know what's going on, as well as to see the foreigner so, of course, have plenty of cards and Japanese materials when coming for the meeting. Make a professional pack of English material in a nice folder and prepare to pass one to each member.

You should check beforehand on how communication will proceed at the meeting though. Will you need to prepare a translator or to find out if they have someone internally who can handle the situation? These details should be figured out well ahead of time. Will your Japanese counterparts be able to understand your standing in front of them presenting in English with a powerpoint? Visual materials, by the way, go a long, long way in Japan. Do not rely on lots of words and technical explanations, and don't print slides with too many words. Stay visual and short and simple as much as possible - it allows the Japanese to process easier and not fall asleep! Also talk clearly and stay away from colloquial English sayings.

The business pace in Japan is relatively slow, possibly the slowest in Asia. Be prepared for many rounds inclusive of visits to each other's place of business, teleconferences, emails and possibly some entertainment. Generally speaking, within a Japanese company, the internal approval process is a long procedure. It's not just one person saying yes, but rather many rounds of consensus building among various levels of the organization. To get a contract concluded in Japan might involve one of the longest experiences you've ever been through in your life.

Don’t assume anything is final in your business agreement or negotiations until it is clearly written and signed in a contract by both parties. There might be a Memorandum of Understanding or a Letter of Intent, or emails saying 'yes' to something, but be wary. 'Yes' could simply mean 'I understand' rather than 'Yes that is how we will do it.' Right until the final contract, always be aware of potential pitfalls that might suddenly appear, that were never expected. Look at it as a kind of test of building up long term trust. Build it well, and your long term business prospects will be good in Japan.

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Prosperous Entertaining

Lunchtime is generally the usual 12-1. Restaurants can get pretty crowded, but it's not uncommon to find seats opening up already by 12:30 pm or so. Most business people are heading to places where they can eat fast, and not too expensively. So it might be a noodle shop, a Korean barbecue place, fast sushi or pork cutlets or a curry place. On the other hand, it won't be uncommon to see nice looking restaurants busy for lunch from 12-2 or longer. But the obvious thing you'll notice at these restaurants is that the clientele are not business people, but generally the wives of the businessmen! Also the food more often then not is non-Japanese, or at least having some foreign flair to it like a French-Japanese combo. But of course there is plenty of choice of McDonalds, KFC, Subway and more, and they are packed, but mostly with high school and college students, or young businessmen sitting by themselves.

Dinner tends to have two rounds, similar to the evening rush hour. Normal dinner time occurs around 5:30-8pm or so, with most restaurants busy then, while the businessman hangouts for the later dinners and drinks run more like 9-11pm. Of course many businessmen do also head out to eat during the earlier round, then head for drinks or possibly head home, especially the younger crowd these days.

The business entertaining has evolved over the past many years, and really has become more varied. Most people have heard of a geisha experience or perhaps Kobe beef (yes they feed beer to the animals and massage them as well - makes for good beef!). Sure these experiences do exist especially within reach of some of the most popular business districts of Tokyo such as Shinjuku, Akasaka, Ikebukuro, and Roppongi. At the same time these experiences will damage your wallet quite significantly! Also going out for Karaoke or heading to an izakaya for some drinking before heading out can happen at times.

But don't feel obligated and assume that this is going to happen all the time. Planning a nice dinner at a Japanese or Western restaurant with some drinks could do just fine. Everyone is different and as you get a feel for each other, you'll get a feel for what everyone likes to do best.

Beyond food, of course ,there is golf, but that won't happen from the start. You also don't know where to go so leave this to the Japanese host. As your negotiating of a deal progresses, a golf outing together, provided the Japanese counterparts do like to play, can go a long way in cementing the relationship still further.

When having dinner with your counterparts, it wouldn't hurt to be aware of a few customs at the table. Most likely you will be in a restaurant and they will give you chopsticks. If you can't use them, then simply ask for a fork. Almost any establishment will accommodate you today. If using your chopsticks, just remember one thing as you are eating your rice. Never stick your chopsticks upright in the rice - it's a sign of death! Just lay the chopsticks down if you are going to put them down.

As we get our drinks, consisting most often of beer in a bottle or sake in a bottle, we begin the ritual of pouring for each other. It is customary to pour each other drinks, so don't pour your own, but pour for your Japanese colleague. Same etiquette when refills come. Your Japanese counterpart likes to keep your glass full at all times. Thus, if you are reaching your limit, slow down the drinking so your glass doesn't get empty too quickly. That would be my suggestion!

According to tradition, alcohol does help create relationships. It also can create quite a round of sick Japanese businessmen if it goes too far! But it's definitely recommended to drink if you can. If you can't, just ask for your coke or juice or water and you'll be fine. I've done business in Japan over 15 years now and I don't drink or smoke.

On the first drinks, someone will perform a toast, or simply say 'cheers,' which would be 'kampai' in Japanese. Generally the most senior person on the hosting side would have the honors.

A pleasant reminder to everyone - there is no tipping in Japan!

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Public Behaviour

People sometimes wonder how they should greet people when introducing themselves. Should we talk abruptly and in a rough voice like the samurai we see on television, or get on our hands and knees as the women are seen so often serving tea to their guests. The reality for most foreigners who don't speak Japanese is they will simply say something like, 'I'm xxx, pleased to meet you.' At the same time they will extend their hand to shake hands. The Japanese are very used to this now. Japanese to Japanese is still bowing to each other with no shaking hands, so if you can add in a slight bow of your head to your counterpart while still looking forward and shaking hands, that will be even better!

Women or men, doesn't matter - shaking hands has become an accepted mode of greeting when a foreigner is present.

Regarding your demeanor, the old recommendation would have been to be solemn and quiet, but today, it's alright to veer away from that a bit. Don't get too loud and overuse your hands as it might turn off the Japanese, though. Also be careful about starting with jokes, as it's rather difficult to get the meaning across, and can leave the Japanese confused to start the meeting, which would not be a good start!

Eye contact is now accepted and preferred overall.

Regarding gestures and sayings that you might want to be careful with, there are a few to be aware of. Try not to use the word 'uh' in your speech, as it has a rough sound to the Japanese and can hurt the overall flow of what your saying. Americans especially tend to throw in 'uh' many times between thoughts, so be aware.

Avoid crossing your legs if possible. Sit up and be attentive in the meetings. Your leg coming up above the table suggests you are too relaxed and actually not showing respect.

For sneezing and coughing, try to turn to the side when doing so and cover your face. If you sneeze into a tissue, then throw it out right away. It doesn't come across well to hold on to it!

Regarding the gestures of the Japanese, I could say that 15 years ago I knew exactly what movement meant what. But today, as the Japanese culture has opened up, so has the development of gestures. In reality, at present they are not that much different from our own.

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