Agile and Japanese Business: A Delicate Dance of Innovation and Tradition
by dalle my best friend

Agile and Japanese Business: A Delicate Dance of Innovation and Tradition


I find the task of integrating Agile principles, as introduced by Jeff Sutherland creator of Scrum, into a Japanese business practice both fascinating and complex. This complexity arises from the inherent characteristics of our cultural dimensions, which significantly influence the way businesses operate in Japan. Here's an empirical reflection on how these cultural aspects interact with Agile principles and cultural dimensions. Below are the 8 challenges of Agile in the country of the rising sun.

  1. Hierarchy and Empowerment:

In the Japanese culture, where hierarchical structures are deeply respected, introducing Agile’s concept of team empowerment presents a delicate balance. We must navigate this transition with care, ensuring that empowerment does not disrupt the respect for hierarchy, yet encourages initiative and decision-making at all levels. Respect for hierarchy should be independent of the influence of the decision-making process. Otherwise, decisions will be often made for the sake of respect toward the hierarchy namesake.

2. Collectivism and Cross-functional Teams:

Japan has a strong sense of collectivism, while fostering unity and group harmony, which might initially seem at odds with Agile’s emphasis on cross-functional and self-organizing teams. The challenge lies in embracing this diversity within teams while still honoring our collective feelings. There is a saying in Japan みんなで渡れば怖くない meaning that, it's not scary, if we all cross the red signal together, which illustrates the deep strength of the mentality of collectivism. To carve out a way out toward a cross-functional independent team will be challenging if the mindset is not prepared ahead of the process initiation.

3. Risk Aversion and Experimentation:

The Agile mindset of welcoming experimentation and learning from failures requires a shift from our natural inclination towards risk aversion. Cultivating an environment where trial and error are seen as steps towards innovation is essential for Agile to thrive in our context. However, in Japanese corporations risk is supposedly taken by the organization such as a department that is often referred to as Soshiki(組織). However head of such departments tends to keep the tradition of the prior commander-in-chief and hence avoid experimentation unless without top-down initiation. I believe the award of risk and experimentation should be embedded in the mindset of organizations to value the principles of agility and the cost-cutting efficiency of progress-making over chasing long-lasting result-chasing management policy. Again, this is also a mindset of innovation. I often find that the lack of ever-distancing competitiveness of a Japanese company in an international context concerning costs is largely liable for this phenomenon of risk aversion policy of organizations.

4. Long-term Orientation and Iterative Development:

While our long-term planning aligns with Agile’s sustainable development goals, the iterative and flexible approach of Agile demands we become more comfortable with change and adaptability in our planning processes. Typical Japanese organizations tend to plan for the next quarter, half a year, yearly, 3 years, 5 years, and 15-year plans for their business and industry. The sense of proving consecutive progress on a direction set in the past might often remain a matter of balance whether the direction is validated over time or the progress is recognized by the decision-makers. The principle of Agility refers to an iterative development to be updated at all times staying ahead of the curve. Thus, it's crucial to balance iterative dev with a long-term orientation mentality.

5. High-context Communication and Agile Communication:

Agile’s need for transparent and direct communication may challenge our high-context communication style, which relies heavily on non-verbal cues and implicit understanding. Finding a way to integrate these communication styles is crucial for the successful adoption of Agile methodologies. The Japanese team members typically remain silent or gently nod expecting others to read between the lines of the team leader's statement, understanding it as a cue to focus on refining the user interface without directly stating it. This is a classic example of high-context communication, where much is left unsaid, relying on shared understanding and non-verbal cues. To integrate Agile principles meetings should be carried with a culture of decision-making progress, over just achieving team harmony which I would mark next.

6. Group Harmony (Wa/和) and Innovation through Conflict:

Japan places value on Wa/和, or harmony may discourage the open expression of conflicting ideas. However, for Agile to foster innovation, we must find ways to encourage respectful debate and diverse viewpoints within the framework of maintaining harmony. Mindset is the cure to the way of aversion to a conflict while running on the border of a group disrupting harmony issues.

7. Tradition and Continuous Improvement (Kaizen):

In corporations in Japan, respect for tradition coexists with a commitment to continuous improvement, or Kaizen, which is a concept that aligns well with Agile’s principles. The key is to leverage our dedication to improvement while being open to the changes Agile implementation requires. I believe this tradition is the key to all the challenges mentioned above. For any team, organizational success is irreplaceable at the table of global business, and it's just a race of Kaizen altogether.

8. Loyalty and Consensus Decision-making(Nemawashi/根回し):

The emphasis on loyalty and consensus in decision-making, though valuable, can slow down the Agile process. We need to explore ways to uphold these values while enhancing our ability to make decisions swiftly and adapt to changes efficiently.

In Japan, loyalty is not just to the company but often to one's team and supervisor. This strong sense of loyalty can lead to a work environment where employees are hesitant to express dissenting opinions, particularly if they contradict the views of senior team members or the collective group. In the context of Agile, where diverse ideas and feedback are crucial for iteration and improvement, this loyalty can inadvertently stifle open dialogue and innovation. Encouraging a culture where loyalty includes being honest and open, even when it involves disagreement, can help integrate Agile more effectively. Consensus decision-making, or Nemawashi, is a process that emphasizes thorough discussion and agreement before making decisions. In Japan, we tend to do several of these nemawashi meetings before the actual meeting takes place at the site. While this ensures that all voices are heard and contributes to team harmony, it can slow down the Agile process, which thrives on quick, iterative decisions and adapting to change swiftly. To reconcile this with Agile, it is beneficial to adopt a modified consensus approach where smaller, pre-defined cross-functional teams are empowered to make decisions within their scope, while still respecting the broader consensus process for major decisions. This can maintain the cultural value of consensus while allowing the flexibility and speed required by Agile methodologies.

In conclusion, embracing Agile is not about replacing our cultural values but rather enriching our business practices by integrating Agile principles in a way that respects and reflects the unique socio-cultural context of every business. This thoughtful fusion of Agile with Japanese business practices promises not only to enhance efficiency and innovation but also to enrich our work culture, blending the best of both worlds.

uhuru-liya hilton

a process artist weaving sanctuary conveners and capacity builders for glo-cal resilience and regeneration.

7mo

I appreciate this share. The descriptions of Japanese Business are similar to what I witness in the Indigenous Diaspora of Black people in the US human service and eco-stewarding enterprises. And I just came from a staff meeting at group home, where the decision making culture was aligned with the Agile principles for the most part. Makes me curious about whether Agile is a reframing of global Indigenous holocracy principles that kept our species thriving and expanding pre-feudalism, whether Agile is a return to what was lost in the shift from commons to fiefdom.

Maria Apud de la Fuente

Thunderbird MBA - Digital Transformations and Global Business Marketing | Visual Communications, Digital Marketing, Brand Consulting, Global Mindset

7mo

This is facinating ! Thank you for sharing

Patrick Thompson

Chief Enterprise Transformation Officer | Chief Information & Digital Transformation Officer | Global Business Services | Chief AI Officer | Chief Operating Officer| CIO Coach | Board Member | Top 100 & Hall of Fame CIO

7mo

Thanks for sharing a profound article.

Juned Prajanta

Strategic and Business Development II Operational Management II Agile Manifesto II Project Management II ESG

7mo

It was thoughtful and deliverable.

Avva Thach M.S, PCC

International Bestselling Author | CEO | TEDx Keynote Speaker | Strategic Advisor | AI Product Management Leader | Doctoral Candidate | Podcast Host | Design Thinker

7mo

Finding that balance between Agile principles and Japanese work culture sounds like a fascinating challenge! 🌏 Excited to see how you navigate this blend of tradition and innovation.

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