When you work in Japan, you may have a chance to propose something or an idea that you will feel is good fir the company. However when you have proposed, you may not hear an answer for maybe a month or so. When you ask for an answer, your boss will reply it is being discussed. What does t mean? Why is it so slow?
Why is decision making in Japanese business culture so unclear? How do I deal with it?
What you will learn
Ringi proposals goes around the company
How to deal with the Ringi system
I feel that I am credible to write this article because I have 7 years experience at a typical midsize Japenese firm. I have been working from fresh graduate where I had etiquette training, and been working as international sales, and corporate strategist.
1. Japanese decision making system, the “Ringi” system.
Japanese decision making us unique in a way that decision is not by a single person, but by the company itself through the system called the “Ringi (稟議)” system. There are 3 points to know about Ringi system
1-1 Ringi proposals goes around the company
When you think about proposals, you would think that it would go from the person proposing, directly to the decision maker. However, in the Japanese Ringi system, a Ringi proposal would go to around not only the proposing division, but also divisions almost not related at all such ad Finance, General Affairs, Legal, Secretarial, and so on. When the Ringi proposal finally reaches the decision maker, you can imagine that it would have taken a lot of time to travel from the proposer. A normal lead time that a Ringi travel from out of your hand to when it comes back to you is a bout one to 2 weeks.
1-2 Decision maker change by price tag of the Ringi
In the Ringi system, decision maker to a Ringi proposal is determined by the price tag of the Ringi. Usually, there is an internal rule in a company that say if something cost above, lets say ¥200k, it needs to be approved by the Ringi system. Aside from that there would be a chart explaining the decision maker’s posts and the price range and purpose the post is responsible for. For example, a proposal for an TVC promotion cost ¥20 mil, this would need to be approved by the Executive Officer responsible for the business for the post is responsible for cost is in between ¥10 mil to ¥100 mil and the purpose is promotion.
1-3 Who made the final call is unclear
Like I mentioned above, there is a clear rule as to who would make the final call. However it is often the case with Japanese companies, the decision maker actually does not have actual approval power to make the call. For example, a proposal may be approved because it is approved in the budget, even if it is way off the line, or it is almost something else entirely because of numerous revisions. And the person who approved the budget is usually the decision maker’s boss or the boss’s boss, so he must approve the proposal to make ends meet, even if he does not like the proposal. As you can se in this case the REAL decision maker is not in the member to approve the Ringi at all, even if the Ringi proposal is covered with stamps of approval. Hence comes to the state that we don’t know who actually made the call because something may get easily approved even if no one actually APPROVE the Ringi.
2. How to deal with the Ringi system
2-1 Make sure you have your proposal on the budget
Your Japanese bosses don’t like to surprises. Whether it is a promotion fee you or your customer really need or not, it usually must be on the budget. Therefore if you would like to have your promotion fee, make sure to hide it well when you turn in your budget at the beginning of your fiscal year.
2-2 Keep your proposal materials clear, simple and to the point
Your boss’s don’t want to read through your explanatory proposal materials. If you can keep it clear and simple, that it is on the budget and the fee is not so off the target, people will stamp approval right away.
Summary
1. Decision making system in Japanese business culture is the Ringi system, and there are no real decision makers in the system.
2. When you want to make things done, make sure to have it on the budget, and keep your proposal simple and make sure the key persons are on your side.
