In the eighties, it seemed that Japan was just perfect. At least that was my impression, and that was part of my reason for wanting to go visit. In such a short time, these people had mastered Western business models and improved to the point of making the Big Three in the States a little scared. American companies were so impressed by Japanese success that they started to adopt Japanese business paradigms.

However, with the economic crisis in Asia still making a rough recover, it is hard to find many companies rushing to copy the Japanese now. Even Japanese firms in the States are starting to reconsider the policies that they imported with them. A few cases in point.

Just In Time

Being a skeptic, I am not one to jump on the new fad in business strategy. However, many businesses thought, and still think JIT is the way to a leaner manufacturing operation. Well, like many "Asian" business practices, this one may only make sense in the unique environment of its home country. Japan is crowded to the point that warehouse space probably doesn't come cheap. Considering the proximity of suppliers, it may be easier to just have them bring the products over as the finish them. However, if a supplier is shut down for the day, the manufacturing shuts down too. In the States, warehouse space is cheaper and companies can't afford a late shipment from a far-away supplier. Many suppliers have been forced to build their own warehouses across the street from the manufacturer and bring the stuff over as it is needed. This does not eliminate really make JIT, but rather outsources (an American business buzzword) the warehousing and part-pulling function. So much for JIT in the USA.

Encouraging the Team Feeling

OK, now this is basically a good idea which Japanese subsidiaries have repackaged and over-emphasized in the States. One of my clients has taken it down to the seating arrangement. Most offices in Japan (including the teachers room at school, workers at banks, sales people, etc) are set up as islands of desks. There is a big open room with no cubicles or separate offices to de-emphasize the team. Instead, strategic teams sit in a row of desks facing each other with a boss or manager at the head. This makes it easy for people to collaborate, and definitely encourages diligent work. However, some people just aren't comfortable having the boss watch over their every move. Bad idea.

Kaizen

If I make fun of this one, I am sure to never get a job in Japan. It is my understanding that every manufacturing operation uses this little phrase as a motivator and as the banner word for their continuous improvement program. Some make it into a quality or safety issue where they solicit employee input on how to make the operation work more efficiently. This one is truly a good idea, I guess. However, it is not much different from the average "American" suggestion box, and requiring people to contribute a certain number of ideas per year may not necessarily lead to great ideas. Anyway...

Then there is the whole broader issue of diehard business relationships and alliances that win out even when a supplier or idea person is totally bad. Efficiency and cost-effectiveness is not necessarily the key, so businesses, banks, and investors make bad decisions about who to support.

But there is something nice to be said about the way Japanese clients seem to wine and dine their auditors with free meals, posh hotels,and strip clubs... But that is another story. In conclusion, the time that I have spent learning about the world-famous Japanese culture and business models may have been completely wasted. Luckily, it is more of a hobby than a business investment for me. Cheers to the global economy.