John Beck, the co-author of Japan’s Business Renaissance(published in Japan as Samurai Jinzai-ron) made an appearance at Globis to discuss how Japan’s workforce is changing, as well as what that change will mean for Japanese firms.
Through a series of surveys and other research, Beck found that Japanese employees express a different set of attitudes these days compared to before. For example, his research found that Japanese professionals are more inclined than Americans to believe companies should be unique, instead of just efficient. They are more likely than Americans to be interested in becoming an entrepreneur. At the same time, they are less likely than Americans to feel enthusiastic about their corporate leadership, believe workers should show respect for tradition or believe loyalty in the most important value.
Beck called these attitudes a “sea change” from where Japan was in the 1980s. Back then, Japan’s economy was riding high, as methods and practices born out of the postwar reconstruction were finally bearing fruit. Japan’s “team oriented” management styles were seen as the next wave, with many other organizations rushing to adopt “Japanese management practices.”
But with the collapse of the bubble, that system suddenly didn’t seem so wonderful anymore. But after more than a decade of stagnation, Japan now seems to be finally turning the corner. What is bringing Japan back? Beck’s answer is that people, companies and countries all go through something he calls the “Renewal Cycle.” The Renewal Cycle is divided into four stages, along two axes representing the focus of change (either externally or internally focused) or the magnitude of the change (either large or small).
Most businesses and countries like to stay in the “small/internal” stage, since that requires the least amount of resources and generate the most profit. But every so often, something happens – a new competitor, a change in consumer demand or an external shock – to push organizations out of that comfort zone. They are forced to go around the cycle again – from “small/external” where they start searching for a new way, to “large/external,” where they start to decide what big changes need to be made, to “large/internal,” where they make the needed changes a reality, and back to “small/internal,” where they make minor tweaks to the new system in place.
Beck said the attitudes represented by Japanese employees in his research mean that Japan is readying for another big change – one where Japanese firms meet the coming challenge of globalization. Beck said Japan would lead the way in industries like mobile technology, entertainment and geriatrics, since these are places Japanese industries already enjoy significant advantages.
But no matter what your industry is, Beck said companies will succeed by preparing their own employees to deal with these stages as they come. Corporations need to recognize in what stage of the cycle they are operating, and plan an HR strategy accordingly. Individuals have a natural tendency to stay in one stage or another. So firms need to make sure their teams have a well-balanced distribution of managers who can look at change from different points of view. In the end, the best corporate teams need to successfully navigate through each stage of the cycle with speed and dexterity. Companies who prepare themselves well for this next stage of Japan’s evolution will find their people ready to deal with any challenge, whether operational, strategic or cultural in nature.
Through a series of surveys and other research, Beck found that Japanese employees express a different set of attitudes these days compared to before. For example, his research found that Japanese professionals are more inclined than Americans to believe companies should be unique, instead of just efficient. They are more likely than Americans to be interested in becoming an entrepreneur. At the same time, they are less likely than Americans to feel enthusiastic about their corporate leadership, believe workers should show respect for tradition or believe loyalty in the most important value.
Beck called these attitudes a “sea change” from where Japan was in the 1980s. Back then, Japan’s economy was riding high, as methods and practices born out of the postwar reconstruction were finally bearing fruit. Japan’s “team oriented” management styles were seen as the next wave, with many other organizations rushing to adopt “Japanese management practices.”
But with the collapse of the bubble, that system suddenly didn’t seem so wonderful anymore. But after more than a decade of stagnation, Japan now seems to be finally turning the corner. What is bringing Japan back? Beck’s answer is that people, companies and countries all go through something he calls the “Renewal Cycle.” The Renewal Cycle is divided into four stages, along two axes representing the focus of change (either externally or internally focused) or the magnitude of the change (either large or small).
Most businesses and countries like to stay in the “small/internal” stage, since that requires the least amount of resources and generate the most profit. But every so often, something happens – a new competitor, a change in consumer demand or an external shock – to push organizations out of that comfort zone. They are forced to go around the cycle again – from “small/external” where they start searching for a new way, to “large/external,” where they start to decide what big changes need to be made, to “large/internal,” where they make the needed changes a reality, and back to “small/internal,” where they make minor tweaks to the new system in place.
Beck said the attitudes represented by Japanese employees in his research mean that Japan is readying for another big change – one where Japanese firms meet the coming challenge of globalization. Beck said Japan would lead the way in industries like mobile technology, entertainment and geriatrics, since these are places Japanese industries already enjoy significant advantages.
But no matter what your industry is, Beck said companies will succeed by preparing their own employees to deal with these stages as they come. Corporations need to recognize in what stage of the cycle they are operating, and plan an HR strategy accordingly. Individuals have a natural tendency to stay in one stage or another. So firms need to make sure their teams have a well-balanced distribution of managers who can look at change from different points of view. In the end, the best corporate teams need to successfully navigate through each stage of the cycle with speed and dexterity. Companies who prepare themselves well for this next stage of Japan’s evolution will find their people ready to deal with any challenge, whether operational, strategic or cultural in nature.
