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American executives through foreign eyes
Business Horizons / May-June1989
American Executives through Foreign Eyes Arthur M. Whitehill
42 Arthur M. WhitehiU is a professor of inter-
national management at the College of Business Administration, University of Hawaii. This article is adapted from his recent books, Yankee Businessman (in Japanese), Simul Publishing Company, Tokyo, and The New American Executive (in Chinese and English), Harvard Management Services, Taipei.
Today's increasing globalization of business requires American managers to deal increasingly with those of other countries and cultures. Americans can be more successful if they recognize that foreign businessmen see them differently than they see themselves. merican businessmen constantly complain about the difficulty of understanding those "strange birds" they must work with in foreign executive suites. "Not only do they do things so differently," complained one frequent business traveler, "they even think differently." Then he added rather plaintively, "Why can't they be more like us?" H o w many times, however, do these same American managers pick up a mirror and peer inward? H o w often do they really try to see themselves as others see them? Do they ever wonder how they look through foreign eyes? In this article, let's take a close look at several aspects of the American business scene that foreign visitors often find interesting, in an odd sort of way. Some deal with typical patterns of behavior, and others touch upon the environment within which U.S. managers live and work.
A
Hi! I'm Bill Jones
Foreign businessmen are particularly
impressed by the breezy informality that is a treasured hallmark of U.S. corporate leaders. In no other country of the world are top managers so relaxed, and on a first-name basis, with their subordinates. It is true that managers everywhere face a common dilemma--having to exercise authority and at the same time trying to be liked by their employees. The real difference among countries lies in the priority given each of these goals. Asian and European managers consistently prefer to put more weight on exercising authority. American managers have a deep and constant need to be liked and, above all, want to be friendly. A story that has made the rounds in many foreign business circles comes from Jimmy Carter's days in the White House. It was Carter's first meeting with Queen Elizabeth of England. To the surprise of the audience and the dismay of the Royal Family, the President stuck out his hand, smiled his famous smile, and said, "Hi! I'm Jimmy Carter." Whether a true story or not, it does make the point that from Presi-
AmericanExecutivesthrough ForeignEyes
43
dent to rank-and-file worker, Americans are seen as rejecting stuffy conventions in favor of open, friendly relationships. The instant use of first names is particularly obnoxious to many foreign businessmen. Although the Japanese may be an extreme example, it is fair to say that in that country first names are used only among family members and intimate friends. Even longtime business associates and coworkers shy away from the use of first names. Small wonder that when a foreign businessman is introduced to Marv, Cedric, Mary, or Bill, his greetings often turn into a muffled and embarrassed silence. Whether they are Chinese, Japanese, German, or Russian, most foreign businessmen respond to the American use of first names in an understanding but often awkward manner. In one extreme case, a Japanese friend decided that his name, Hiroshi Ishihara, would be impossible for Americans to pro-
nounce. Since ishi in Japanese means, among other things, "rock," he decided that henceforth he would be called "Rocky"--a decision with which only his most insensitive American friends could comply. Such adopted English names are never used when the foreign visitor has a chance to meet with his fellow countrymen. As Ishihara-san explained, "That would sound just too silly!" Like first names, the much-talkedabout but seldom-practiced open-door policy in American corporations remains an enigma to foreigners. They interpret such a policy as meaning that every manager's door, including the president's, is always open to anyone wishing to drop in and chat about company business. If a janitor gets an idea for improving cleanliness in the washrooms, presumably he can share it with the president. If a middle manager has a problem, the CEO is supposed to be eager and waiting to discuss it with him.
Foreign visitors find, however, that this policy is seldom followed. The door may or may not be physically open; psychological and social barriers make employees reluctant to enter. As one Korean visitor observed, "I think your 'open door' is just a slogan. The best use of an open door is to allow managers to get out and mingle with their employees." His point is a good one, since not many rank-and-file workers, or even middle managers, will venture into the express elevator to the top floor and confront the "Big Boss" in his paneled office. Managers from abroad are not fooled by an American's instant use of first names, by his open-door policy, or by any other superficial evidence of friendly informality. They know that good old Marv--even with his office door wide open--can be as tough and distant as anyone. He may insist that "We're all just one big happy family here." But in his heart and in his mind he may really be motivated more by the
Business Horizons / May-June 1989 old saying, "Familiarity breeds contempt."
Don't Just Sit There--Do Something!
44
A close friend and executive in a large Japanese company spoke very frankly to me one day. He said, "You Americans are fond of the expression 'Don't just sit there--do something.' Once in a while, you should reverse that advice. We Japanese would prefer to say 'Don't just do something--sit there.' Contemplation may be more productive than action." It is true that U.S. businessmen have always been action-oriented. Only when rushing to an endless series of appointments and conferences do they really feel productive. For many, to be in perpetual motion seems to be their ultimate goal. It was Santayana who once observed that Americans are possessed by an obscure compulsion that will not let them rest, that drives them on faster and faster--not unlike a fanatic who redoubles his effort when he has lost sight of his goal. The greatest compliment that can be paid a U.S. executive is to call him dynamic. A recent management seminar was conducted in more than a dozen capitals around the world on the subject of motivation. In the short period of four hours (including lunch), the confident speaker guaranteed to solve all of management's motivational problems. Most important, the splashy brochures promoted the speaker as being extremely DYNAMIC! There is no doubt that the speaker was energetic, vigorous, and forceful-and an impressive actor. The long wire on the microphone, which he seemed to be choking, was like a leash on a caged lion. Pacing back and forth from one side of the stage to the other, gesturing and shouting, it is true he gave an impressive and action-packed performance. When this speaker was in Hawaii, I asked a random sample of the Americans in the audience what they thought of the seminar. Almost unanimously, the comments were "It was great," "He is a wonderful speaker," "It was well worth the time and money." That the substance of the speaker's remarks was
about as solid as cotton candy apparently made little difference. It is doubtful that audiences in Frankfurt, Singapore, or Tokyo were as generous in their reactions. With pencils sharpened and notebooks ready, they would expect to hear something of value to be reported to their colleagues back in the company. Furthermore, foreign visitors are startled by Americans' typically low tolerance of silence. Most Asians, in contrast, can endure long periods during which nobody says anything. They feel that these opportunities for organizing and evaluating one's thoughts may be the most productive in any conference or negotiation. Their relative inability to tolerate long periods of silence has gotten many American negotiators into serious trouble when the other side feels no comparable frustration and tension. As one foreign consultant cautions, "This is a bad trait indeed when the negotiation game is being played in a boardroom in Rio or in a Ginza nightclub, and when the other side is playing by Brazilian or Japanese rules." The international vice president of a large U.S. corporation confessed to his own experience with the consequences of failing to understand foreign negotiating patterns. He said, "In one of my company's deals overseas, our buyer was sitting across the table from the Japanese manufacturer's representative for the purpose of bidding on an item in ~vhich we were interested. Following the usual niceties, our man offered $150,000 per batch. On hearing the bid, the Japanese sat back and relaxed in his chair to meditate. Our buyer, interpreting this silence to be disapproval, instantly pushed his offer higher. It was only after the session was over that he realized he had paid too much." It is true that Americans are considered an outspoken lot. Masaaki Imai contrasts this with the behavior of his own countrymen in saying, "Sitting mute is clearly a minus at the Western conference, while silence is still silver, if not golden, in the Japanese mind-set. Many Japanese sit silent throughout the conference. Nobody thinks the worse of them for that. They are like
oxygen; their views may not be visible, but they are making a positive contribution nonetheless." Unless and until American business leaders can learn to live more comfortably with silence, and to value thinking and listening as highly as mere physical activity, foreign executives will enjoy an easy advantage. It has been suggested that top U.S. executives keep a tiny replica of the giant Buddha of Kamakura, Japan, on their desks at all times. Its typical posture of quiet and peaceful meditation should serve as a constant reminder that great leaders are remembered for their thoughts as well as their deeds.
In The Long Run We're All Dead A common criticism by foreign executives of their American counterparts is that they live too much in the present, put too much emphasis upon shortterm goals, and will not make longterm commitments for the future. Indeed, U.S. managers themselves share this view. A survey of nearly 1,000 top executives recently showed that 76 percent agreed that there has been a damaging overemphasis upon this quarter's earnings, this year's budget. One executive with w h o m I was discussing this problem defended his own behavior by asking, "Who can afford to live in the future?" he asked. Then he added, "In the long run we're all dead." Overseas critics have pointed out that this prevailing short-term view has not paid off in contributing to the real need of the American economy--increased productivity. Without bold, long-term investment in promising new products and in the latest plant and equipment, they point out, productivity has nowhere to go but down. The average age of a U.S. factory is 20 years--eight years older than the equivalent German plant and more than ten years older than a comparable plant in Japan. In some specific industries such as steel, the comparison would be even more bleak for the United States. Why do so many U.S. businessmen continue to manage their companies with this dangerous myopia? Perhaps
American Executivesthrough ForeignEyes
"The American businessman's emphasis upon the short run tends to color his perception of almost every aspect of management." 45
the reason most frequently suggested is that promotions to top positions in American corporations increasingly have favored specialists in finance, marketing, accounting, and law. All their previous training and experience tend to push them in the direction of immediate actions and immediate results. For them, as one such executive stated so well, business is no more than "numbers on a scoreboard." Many other reasons could be mentioned. There is little doubt, for example, that corporate leaders in the United States are under tremendous pressure from stockholders to pay generous and regular dividends. This pressure is especially felt from the huge institutional investors--life insurance companies, pension funds, and the like. The American b u s i n e s s m a n ' s emphasis upon the short run tends to color his perception of almost every aspect of management. Let us take marketing as an example. One keen foreign observer suggests that U.S. managers think only in terms of sales, but Japanese executives think in terms of "everlasting customers." This distinction is a good one. There is a world of difference between cultivating an everlasting customer and making a onetime sale. One does not disappoint an everlasting customer by selling defective products or by failing to meet delivery schedules. A long-term view of customer relations would see a sale as the beginning, not the end, of the selling process.
A similar comparison can be made between the U.S. and Japanese perceptions of employees. American businessmen typically refer to the bulk of their employees as "hourly workers." Even though such workers may remain with the company for their entire careers, they continue to be hourly workers. Rather than developing a feeling of security and mutual trust, such treatment emphasizes the temporary nature of atiemployment relationship that can be terminated at any time. In contrast, regular employees in Japanese companies are "lifetime employees," a term that both expresses and forces a long-term view of the work force. One Japanese visitor has been quoted as saying, "I get the impression that American managers spend more time worrying about the well-being and loyalty of their stockholders, whom they don't know, than they do about their workers, whom they do know. This is very puzzling. The Japanese manager is always asking himself how he can share the company's success with his workers." Too often, the American emphasis upon short-term results leads to a reputation for being short sprinters but not long-distance runners. I am reminded of two companies--one American and one Japanese--that entered the relatively new field of raising fresh-water prawns. The two firms were located in California, and one would expect that the U.S. company would feel more confident since it was operating in
familiar territory. Aquaculture, however, is a slow process which simply cannot be hurried. At the end of the first year, the American firm looked at its bottom line and saw only red ink. Fearing further losses, the decision was made to pack up, get out, and look for greener pastures. The Japanese also suffered a substantial first-year loss. But they did not panic. Instead, they increased their investment, improved their efficiency, and are now running a profitable venture with the whole market to themselves. Ieyasu Tokugawa, a shrewd Japanese samurai and founder of the Tokugawa shogunate, perhaps had a message for present-day American managers when he wrote, "Consider patience the foundation of enduring peace, and anger thy enemy." Short on patience and long on ambition, U.S. managers have found this bit of advice difficult to follow.
Honorable Chairperson When is the chairman of the board not a chairman? The answer is simple. When she is a chairwoman. But to avoid any hint of sexism, he or she is now referred to as "chairperson." Stewardesses have become "cabin attendants," waitresses have become "food handlers," and janitors have been elevated to the lofty title of "custodian." No other country in the world has reacted so strongly as the United States to overcome national guilt feelings regard-
Business Horizons / May-June1989
46
ing the treatment of minorities in employment. Writing in 1982, a leading Japanese professor of law tactfully pointed out the very real costs to American industry of complying with equal employment opportunity (EEO) laws. He warned that "the idea of equal opportunity for groups hitherto discriminated against, such as minorities and women, tends to protect the interests of such groups without particular consideration of the efficiency and ability of individuals belonging to such groups." A major concern, he warned, is the glaring contradiction "between the idea of fairness and the efficient allocation of the labor force in an industrial society." The crucial point is that under EEO, American businessmen do play by a different set of rules than their competitors in other parts of the world. U.S. airlines have been particularly hard-pressed to live within the laws. Cabin crews now must be hired without consideration of sex or age. This may be very desirable and supportive of human rights. But when given the choice between grandmotherly and often grouchy female attendants on U.S. planes and the svelte young girls in colorful kimonos or saris on other airlines, the experienced business traveler will opt for the latter every time. Foreign companies operating in the United States frequently are confused, and sometimes angered, by the nation's obsession with human rights and equality. For example, the giant Hitachi Corporation thought things were going quite well in its television assembly plant in southern California until mid1982. Then the company had its first real American-style shock. Hitachi had to pay a quarter-million-dollar penalty to settle a racial discrimination suit. It seems that it was hiring too many Asians and not enough blacks and Hispanics at the plant. Even the most severe foreign critics, however, will admit that there have been many positive results of EEO legislation. They recognize that of all the minority groups, women no doubt have benefited most. As one foreign corporate president confesses, "It never occurred to me that women might be
willing and able to do many skilled craft jobs, be sales representatives, or fill professional and managerial positions." But there is one recent trend in America that is simply beyond the comprehension of most foreign executives. It is difficult for them to accept the fact that in a growing number of families, the working wife already holds a more important job and earns more pay than her husband. In such a situation, if the wife gets a promotion that requires moving to a new location, her husband is willing to leave his lesser job and follow. Recently, I described this growing possibility to a small group of Japanese who were attending a seminar on U.S. management practices. When I asked for their reactions, only one would respond. And his only comment, made with considerable emotion and feeling was, "What a terrible country!"
The Legal Jungle "May your life be filled with lawyers" is an old Mexican curse that foreigners believe has fallen upon most U.S. corporations. There is little doubt that among the most highly regarded of all staff members in an American company are its lawyers. Expert legal opinion is considered a jewel beyond price. Housed in luxurious suites, surrounded by assistants and secretaries, the legal staff of alargeU.S, company may spread over several floors of a typical headquarters building. Viewed with hushed awe by the operating executives, company lawyers have become the selfproclaimed and self-serving prima donnas of American industry. Not so in Japan! Former U.S. Ambassador to Japan Edwin O. Reischauer made a startling comparison in pointing out that there are "fewer than one-fifteenth" as many lawyers per capita in Japan as in the United States. In many European as well as Asian countries, lawyers are suffered rather than worshipped. One reason for this impressive difference is that although most Americans appear to enjoy suing (and even being sued) on the most frivolous issues, businessmen in most other coun-
tries are extremely hesitant about turning to the law. It comes as no surprise, therefore, that lawyers in N e w York are far more important than their counterparts in Tokyo or Buenos Aires. On this point, there is a popular story making the rounds of Japanese business circles. So legalistic was the representative of an American candy company that he ruined his chances to establish a potentially profitable joint venture with a Japanese corporation. The product v~as a top-quality, prestige chocolate with a fine reputation already established in the United States. The goal was to establish a plush retail outlet on Tokyo's glittering Ginza. Many days were spent by the U.S. company's legal department in drawing up a lengthy, complete contract before their representative packed his bags for a trip to Tokyo. He was proud of the leather-bound, printed contract with almost 50 pages of fine print. No detail had been omitted. All that was lacking were the two signatures needed to launch the new enterprise. With no knowledge of the Japanese language or culture, the U.S. representative faced a half dozen Oriental negotiators. He had a copy of the contract for each member of the Japanese team. But he was crushed when not one of them even opened the impressive legal document before them. Instead, a pleasant and inconclusive discussion of general business conditions in the two countries took up the whole afternoon. No decision on the proposed joint venture was made then--nor was the possibility ever discussed again. The idea of being presented with a complete contract at the beginning of negotiations was seen as an inept and extremely rude act on the part of the U.S. trader. One of the Japanese negotiators later explained to me that his group had decided it would not be wise to enter into a long-term business relationship with such a person. Management expert Peter Drucker has warned against the possible side effects of excessive legalism. He said, "One of our major problems is that we have been a nation of lawyers since the beginning and lawyers believe in, and profit from, adversarial relations."
American Executivesthrough ForeignEyes
"Foreigners sometimes complain about this open, exuberant patriotism, but they also admire and respect it. Somewhat reluctantly, they will admit that the widespread confidence and optimism of Americans concerning their own way of life set an example worth following."
American managers face many adversaries: the unions, the government, even their own employees. But must they be viewed in this way? This is a question often asked by businessmen in many other countries throughout the world. A m e r i c a As N u m b e r O n e
Finally, if there is a single trait held by almost every American businessman, it is pride and confidence in his country's economic and political system. Pride in his own nation's uniqueness, and confidence in its virtue and strength, persist despite the economic miracles achieved by other nations in recent years. Foreigners sometimes complain about this open, exuberant patriotism, but they also admire and respect it. Somewhat reluctantly, they will admit that the widespread confidence and optimism of Americans concerning their own way of life set an example worth following. For them to admit such a thing is not easy. As Mark Twain once said, "Few things are harder to put up with than the annoyance of a good example." According to a study by Stanford University's Alex Inkeles, this pride in country has been around for a long while. The real test in judging the strength of this sort of patriotism is to ask people if they would like to leave their country and live elsewhere. When
asked this question, only 12 percent of Americans answered yes. At the other end of the scale, a whopping 41 percent of British subjects said they would like to emigrate. Where does this high degree of American self-satisfaction come from? Casual outsiders sometimes see it merely as a bad case of national smugness and complacency. But more careful analysts are ready to admit that it is anchored in several cultural beliefs that have always been typically American. First, there is the unshakable belief that a man born in a log cabin may well become president of his country. Translated into the business world, this means that even the office boy may one day become the company's CEO. This doesn't happen often these days, but freedom of opportunity remains a cherished American tradition. A second cultural belief which American businessmen refer to with pride is that positions of corporate leadership are filled strictly on the basis of merit. It is ability, not one's family or wealth, that gets a person to the top. This, in turn, leads them to the happy conclusion that America's leaders, whether in government or business, are the best to be found. Finally, there is a strong preference and enthusiasm on the part of Americans for their own version of a regulated free-enterprise system. There is little doubt among foreigners that U.S.
businessmen have no intention of embracing communism, socialism, or even the close relationship between business and government that has prompted use of the term "Japan, Inc." Executives in other countries do warn, however, that such intense national pride can become an obsession and blind its followers to what is going on in the far bigger world outside. This has been, they feel, one of the problems leading to the erosion of the competitiveness of U.S. firms in world markets. In the enthusiasm for their own business strategies, policies, and practices, foreign competition was ignored too often. At least one highqevel government official in Washington seems to agree. He adds, "While we were resting on our laurels, companies abroad were making long-term commitments for the future. We were beginning to think we could never lose." The serious troubles of the U.S. automobile, motorcycle, television, and steel industries bear mute testimony to his remarks. The truth is, because America was number one for so long in the industrial world, top managers have found it extremely difficult to balance pride in their own values and behavior with an honest willingness to learn from others. Americans don't want to lose the spine-tingling patriotism and love of country that they feel when they sing "God Bless America." Neither, however, do they want to become so self-
47
Business Horizons / May-June1989 assured and righteous in their singing that they fail to hear the different tunes to which other nations are marching-some of them way out in front. Americans and foreigners alike know that this is the dilemma that America's top business leaders face in the 1990s and beyond. aking a "world point of view" is not easy. To see ourselves as others view us from afar requires a deliberate effort to reject a
T 48
pervasive self-reference tendency. It is true that American executives have had a strong tendency to rely almost totally on themselves as reference points in making business decisions. This tendency is very natural. In situations where decisions must be made, the easiest assumption to make is that others will behave as we would behave in similar circumstances. If one is talking about individuals of one's own culture, this assumption can be quite valid. But in the interna-
tional arena, it is a risky path to follow. There is an urgent need today for American top managers to raise their sights, look beyond the horizon, and "do their homework" concerning alternative approaches to common business problems which others have found useful. If this is done, many foreign experts agree that the prestige of American industry as number one could be restored before the turn of the century. []
American Executives through Foreign Eyes Arthur M. Whitehill
42 Arthur M. WhitehiU is a professor of inter-
national management at the College of Business Administration, University of Hawaii. This article is adapted from his recent books, Yankee Businessman (in Japanese), Simul Publishing Company, Tokyo, and The New American Executive (in Chinese and English), Harvard Management Services, Taipei.
Today's increasing globalization of business requires American managers to deal increasingly with those of other countries and cultures. Americans can be more successful if they recognize that foreign businessmen see them differently than they see themselves. merican businessmen constantly complain about the difficulty of understanding those "strange birds" they must work with in foreign executive suites. "Not only do they do things so differently," complained one frequent business traveler, "they even think differently." Then he added rather plaintively, "Why can't they be more like us?" H o w many times, however, do these same American managers pick up a mirror and peer inward? H o w often do they really try to see themselves as others see them? Do they ever wonder how they look through foreign eyes? In this article, let's take a close look at several aspects of the American business scene that foreign visitors often find interesting, in an odd sort of way. Some deal with typical patterns of behavior, and others touch upon the environment within which U.S. managers live and work.
A
Hi! I'm Bill Jones
Foreign businessmen are particularly
impressed by the breezy informality that is a treasured hallmark of U.S. corporate leaders. In no other country of the world are top managers so relaxed, and on a first-name basis, with their subordinates. It is true that managers everywhere face a common dilemma--having to exercise authority and at the same time trying to be liked by their employees. The real difference among countries lies in the priority given each of these goals. Asian and European managers consistently prefer to put more weight on exercising authority. American managers have a deep and constant need to be liked and, above all, want to be friendly. A story that has made the rounds in many foreign business circles comes from Jimmy Carter's days in the White House. It was Carter's first meeting with Queen Elizabeth of England. To the surprise of the audience and the dismay of the Royal Family, the President stuck out his hand, smiled his famous smile, and said, "Hi! I'm Jimmy Carter." Whether a true story or not, it does make the point that from Presi-
AmericanExecutivesthrough ForeignEyes
43
dent to rank-and-file worker, Americans are seen as rejecting stuffy conventions in favor of open, friendly relationships. The instant use of first names is particularly obnoxious to many foreign businessmen. Although the Japanese may be an extreme example, it is fair to say that in that country first names are used only among family members and intimate friends. Even longtime business associates and coworkers shy away from the use of first names. Small wonder that when a foreign businessman is introduced to Marv, Cedric, Mary, or Bill, his greetings often turn into a muffled and embarrassed silence. Whether they are Chinese, Japanese, German, or Russian, most foreign businessmen respond to the American use of first names in an understanding but often awkward manner. In one extreme case, a Japanese friend decided that his name, Hiroshi Ishihara, would be impossible for Americans to pro-
nounce. Since ishi in Japanese means, among other things, "rock," he decided that henceforth he would be called "Rocky"--a decision with which only his most insensitive American friends could comply. Such adopted English names are never used when the foreign visitor has a chance to meet with his fellow countrymen. As Ishihara-san explained, "That would sound just too silly!" Like first names, the much-talkedabout but seldom-practiced open-door policy in American corporations remains an enigma to foreigners. They interpret such a policy as meaning that every manager's door, including the president's, is always open to anyone wishing to drop in and chat about company business. If a janitor gets an idea for improving cleanliness in the washrooms, presumably he can share it with the president. If a middle manager has a problem, the CEO is supposed to be eager and waiting to discuss it with him.
Foreign visitors find, however, that this policy is seldom followed. The door may or may not be physically open; psychological and social barriers make employees reluctant to enter. As one Korean visitor observed, "I think your 'open door' is just a slogan. The best use of an open door is to allow managers to get out and mingle with their employees." His point is a good one, since not many rank-and-file workers, or even middle managers, will venture into the express elevator to the top floor and confront the "Big Boss" in his paneled office. Managers from abroad are not fooled by an American's instant use of first names, by his open-door policy, or by any other superficial evidence of friendly informality. They know that good old Marv--even with his office door wide open--can be as tough and distant as anyone. He may insist that "We're all just one big happy family here." But in his heart and in his mind he may really be motivated more by the
Business Horizons / May-June 1989 old saying, "Familiarity breeds contempt."
Don't Just Sit There--Do Something!
44
A close friend and executive in a large Japanese company spoke very frankly to me one day. He said, "You Americans are fond of the expression 'Don't just sit there--do something.' Once in a while, you should reverse that advice. We Japanese would prefer to say 'Don't just do something--sit there.' Contemplation may be more productive than action." It is true that U.S. businessmen have always been action-oriented. Only when rushing to an endless series of appointments and conferences do they really feel productive. For many, to be in perpetual motion seems to be their ultimate goal. It was Santayana who once observed that Americans are possessed by an obscure compulsion that will not let them rest, that drives them on faster and faster--not unlike a fanatic who redoubles his effort when he has lost sight of his goal. The greatest compliment that can be paid a U.S. executive is to call him dynamic. A recent management seminar was conducted in more than a dozen capitals around the world on the subject of motivation. In the short period of four hours (including lunch), the confident speaker guaranteed to solve all of management's motivational problems. Most important, the splashy brochures promoted the speaker as being extremely DYNAMIC! There is no doubt that the speaker was energetic, vigorous, and forceful-and an impressive actor. The long wire on the microphone, which he seemed to be choking, was like a leash on a caged lion. Pacing back and forth from one side of the stage to the other, gesturing and shouting, it is true he gave an impressive and action-packed performance. When this speaker was in Hawaii, I asked a random sample of the Americans in the audience what they thought of the seminar. Almost unanimously, the comments were "It was great," "He is a wonderful speaker," "It was well worth the time and money." That the substance of the speaker's remarks was
about as solid as cotton candy apparently made little difference. It is doubtful that audiences in Frankfurt, Singapore, or Tokyo were as generous in their reactions. With pencils sharpened and notebooks ready, they would expect to hear something of value to be reported to their colleagues back in the company. Furthermore, foreign visitors are startled by Americans' typically low tolerance of silence. Most Asians, in contrast, can endure long periods during which nobody says anything. They feel that these opportunities for organizing and evaluating one's thoughts may be the most productive in any conference or negotiation. Their relative inability to tolerate long periods of silence has gotten many American negotiators into serious trouble when the other side feels no comparable frustration and tension. As one foreign consultant cautions, "This is a bad trait indeed when the negotiation game is being played in a boardroom in Rio or in a Ginza nightclub, and when the other side is playing by Brazilian or Japanese rules." The international vice president of a large U.S. corporation confessed to his own experience with the consequences of failing to understand foreign negotiating patterns. He said, "In one of my company's deals overseas, our buyer was sitting across the table from the Japanese manufacturer's representative for the purpose of bidding on an item in ~vhich we were interested. Following the usual niceties, our man offered $150,000 per batch. On hearing the bid, the Japanese sat back and relaxed in his chair to meditate. Our buyer, interpreting this silence to be disapproval, instantly pushed his offer higher. It was only after the session was over that he realized he had paid too much." It is true that Americans are considered an outspoken lot. Masaaki Imai contrasts this with the behavior of his own countrymen in saying, "Sitting mute is clearly a minus at the Western conference, while silence is still silver, if not golden, in the Japanese mind-set. Many Japanese sit silent throughout the conference. Nobody thinks the worse of them for that. They are like
oxygen; their views may not be visible, but they are making a positive contribution nonetheless." Unless and until American business leaders can learn to live more comfortably with silence, and to value thinking and listening as highly as mere physical activity, foreign executives will enjoy an easy advantage. It has been suggested that top U.S. executives keep a tiny replica of the giant Buddha of Kamakura, Japan, on their desks at all times. Its typical posture of quiet and peaceful meditation should serve as a constant reminder that great leaders are remembered for their thoughts as well as their deeds.
In The Long Run We're All Dead A common criticism by foreign executives of their American counterparts is that they live too much in the present, put too much emphasis upon shortterm goals, and will not make longterm commitments for the future. Indeed, U.S. managers themselves share this view. A survey of nearly 1,000 top executives recently showed that 76 percent agreed that there has been a damaging overemphasis upon this quarter's earnings, this year's budget. One executive with w h o m I was discussing this problem defended his own behavior by asking, "Who can afford to live in the future?" he asked. Then he added, "In the long run we're all dead." Overseas critics have pointed out that this prevailing short-term view has not paid off in contributing to the real need of the American economy--increased productivity. Without bold, long-term investment in promising new products and in the latest plant and equipment, they point out, productivity has nowhere to go but down. The average age of a U.S. factory is 20 years--eight years older than the equivalent German plant and more than ten years older than a comparable plant in Japan. In some specific industries such as steel, the comparison would be even more bleak for the United States. Why do so many U.S. businessmen continue to manage their companies with this dangerous myopia? Perhaps
American Executivesthrough ForeignEyes
"The American businessman's emphasis upon the short run tends to color his perception of almost every aspect of management." 45
the reason most frequently suggested is that promotions to top positions in American corporations increasingly have favored specialists in finance, marketing, accounting, and law. All their previous training and experience tend to push them in the direction of immediate actions and immediate results. For them, as one such executive stated so well, business is no more than "numbers on a scoreboard." Many other reasons could be mentioned. There is little doubt, for example, that corporate leaders in the United States are under tremendous pressure from stockholders to pay generous and regular dividends. This pressure is especially felt from the huge institutional investors--life insurance companies, pension funds, and the like. The American b u s i n e s s m a n ' s emphasis upon the short run tends to color his perception of almost every aspect of management. Let us take marketing as an example. One keen foreign observer suggests that U.S. managers think only in terms of sales, but Japanese executives think in terms of "everlasting customers." This distinction is a good one. There is a world of difference between cultivating an everlasting customer and making a onetime sale. One does not disappoint an everlasting customer by selling defective products or by failing to meet delivery schedules. A long-term view of customer relations would see a sale as the beginning, not the end, of the selling process.
A similar comparison can be made between the U.S. and Japanese perceptions of employees. American businessmen typically refer to the bulk of their employees as "hourly workers." Even though such workers may remain with the company for their entire careers, they continue to be hourly workers. Rather than developing a feeling of security and mutual trust, such treatment emphasizes the temporary nature of atiemployment relationship that can be terminated at any time. In contrast, regular employees in Japanese companies are "lifetime employees," a term that both expresses and forces a long-term view of the work force. One Japanese visitor has been quoted as saying, "I get the impression that American managers spend more time worrying about the well-being and loyalty of their stockholders, whom they don't know, than they do about their workers, whom they do know. This is very puzzling. The Japanese manager is always asking himself how he can share the company's success with his workers." Too often, the American emphasis upon short-term results leads to a reputation for being short sprinters but not long-distance runners. I am reminded of two companies--one American and one Japanese--that entered the relatively new field of raising fresh-water prawns. The two firms were located in California, and one would expect that the U.S. company would feel more confident since it was operating in
familiar territory. Aquaculture, however, is a slow process which simply cannot be hurried. At the end of the first year, the American firm looked at its bottom line and saw only red ink. Fearing further losses, the decision was made to pack up, get out, and look for greener pastures. The Japanese also suffered a substantial first-year loss. But they did not panic. Instead, they increased their investment, improved their efficiency, and are now running a profitable venture with the whole market to themselves. Ieyasu Tokugawa, a shrewd Japanese samurai and founder of the Tokugawa shogunate, perhaps had a message for present-day American managers when he wrote, "Consider patience the foundation of enduring peace, and anger thy enemy." Short on patience and long on ambition, U.S. managers have found this bit of advice difficult to follow.
Honorable Chairperson When is the chairman of the board not a chairman? The answer is simple. When she is a chairwoman. But to avoid any hint of sexism, he or she is now referred to as "chairperson." Stewardesses have become "cabin attendants," waitresses have become "food handlers," and janitors have been elevated to the lofty title of "custodian." No other country in the world has reacted so strongly as the United States to overcome national guilt feelings regard-
Business Horizons / May-June1989
46
ing the treatment of minorities in employment. Writing in 1982, a leading Japanese professor of law tactfully pointed out the very real costs to American industry of complying with equal employment opportunity (EEO) laws. He warned that "the idea of equal opportunity for groups hitherto discriminated against, such as minorities and women, tends to protect the interests of such groups without particular consideration of the efficiency and ability of individuals belonging to such groups." A major concern, he warned, is the glaring contradiction "between the idea of fairness and the efficient allocation of the labor force in an industrial society." The crucial point is that under EEO, American businessmen do play by a different set of rules than their competitors in other parts of the world. U.S. airlines have been particularly hard-pressed to live within the laws. Cabin crews now must be hired without consideration of sex or age. This may be very desirable and supportive of human rights. But when given the choice between grandmotherly and often grouchy female attendants on U.S. planes and the svelte young girls in colorful kimonos or saris on other airlines, the experienced business traveler will opt for the latter every time. Foreign companies operating in the United States frequently are confused, and sometimes angered, by the nation's obsession with human rights and equality. For example, the giant Hitachi Corporation thought things were going quite well in its television assembly plant in southern California until mid1982. Then the company had its first real American-style shock. Hitachi had to pay a quarter-million-dollar penalty to settle a racial discrimination suit. It seems that it was hiring too many Asians and not enough blacks and Hispanics at the plant. Even the most severe foreign critics, however, will admit that there have been many positive results of EEO legislation. They recognize that of all the minority groups, women no doubt have benefited most. As one foreign corporate president confesses, "It never occurred to me that women might be
willing and able to do many skilled craft jobs, be sales representatives, or fill professional and managerial positions." But there is one recent trend in America that is simply beyond the comprehension of most foreign executives. It is difficult for them to accept the fact that in a growing number of families, the working wife already holds a more important job and earns more pay than her husband. In such a situation, if the wife gets a promotion that requires moving to a new location, her husband is willing to leave his lesser job and follow. Recently, I described this growing possibility to a small group of Japanese who were attending a seminar on U.S. management practices. When I asked for their reactions, only one would respond. And his only comment, made with considerable emotion and feeling was, "What a terrible country!"
The Legal Jungle "May your life be filled with lawyers" is an old Mexican curse that foreigners believe has fallen upon most U.S. corporations. There is little doubt that among the most highly regarded of all staff members in an American company are its lawyers. Expert legal opinion is considered a jewel beyond price. Housed in luxurious suites, surrounded by assistants and secretaries, the legal staff of alargeU.S, company may spread over several floors of a typical headquarters building. Viewed with hushed awe by the operating executives, company lawyers have become the selfproclaimed and self-serving prima donnas of American industry. Not so in Japan! Former U.S. Ambassador to Japan Edwin O. Reischauer made a startling comparison in pointing out that there are "fewer than one-fifteenth" as many lawyers per capita in Japan as in the United States. In many European as well as Asian countries, lawyers are suffered rather than worshipped. One reason for this impressive difference is that although most Americans appear to enjoy suing (and even being sued) on the most frivolous issues, businessmen in most other coun-
tries are extremely hesitant about turning to the law. It comes as no surprise, therefore, that lawyers in N e w York are far more important than their counterparts in Tokyo or Buenos Aires. On this point, there is a popular story making the rounds of Japanese business circles. So legalistic was the representative of an American candy company that he ruined his chances to establish a potentially profitable joint venture with a Japanese corporation. The product v~as a top-quality, prestige chocolate with a fine reputation already established in the United States. The goal was to establish a plush retail outlet on Tokyo's glittering Ginza. Many days were spent by the U.S. company's legal department in drawing up a lengthy, complete contract before their representative packed his bags for a trip to Tokyo. He was proud of the leather-bound, printed contract with almost 50 pages of fine print. No detail had been omitted. All that was lacking were the two signatures needed to launch the new enterprise. With no knowledge of the Japanese language or culture, the U.S. representative faced a half dozen Oriental negotiators. He had a copy of the contract for each member of the Japanese team. But he was crushed when not one of them even opened the impressive legal document before them. Instead, a pleasant and inconclusive discussion of general business conditions in the two countries took up the whole afternoon. No decision on the proposed joint venture was made then--nor was the possibility ever discussed again. The idea of being presented with a complete contract at the beginning of negotiations was seen as an inept and extremely rude act on the part of the U.S. trader. One of the Japanese negotiators later explained to me that his group had decided it would not be wise to enter into a long-term business relationship with such a person. Management expert Peter Drucker has warned against the possible side effects of excessive legalism. He said, "One of our major problems is that we have been a nation of lawyers since the beginning and lawyers believe in, and profit from, adversarial relations."
American Executivesthrough ForeignEyes
"Foreigners sometimes complain about this open, exuberant patriotism, but they also admire and respect it. Somewhat reluctantly, they will admit that the widespread confidence and optimism of Americans concerning their own way of life set an example worth following."
American managers face many adversaries: the unions, the government, even their own employees. But must they be viewed in this way? This is a question often asked by businessmen in many other countries throughout the world. A m e r i c a As N u m b e r O n e
Finally, if there is a single trait held by almost every American businessman, it is pride and confidence in his country's economic and political system. Pride in his own nation's uniqueness, and confidence in its virtue and strength, persist despite the economic miracles achieved by other nations in recent years. Foreigners sometimes complain about this open, exuberant patriotism, but they also admire and respect it. Somewhat reluctantly, they will admit that the widespread confidence and optimism of Americans concerning their own way of life set an example worth following. For them to admit such a thing is not easy. As Mark Twain once said, "Few things are harder to put up with than the annoyance of a good example." According to a study by Stanford University's Alex Inkeles, this pride in country has been around for a long while. The real test in judging the strength of this sort of patriotism is to ask people if they would like to leave their country and live elsewhere. When
asked this question, only 12 percent of Americans answered yes. At the other end of the scale, a whopping 41 percent of British subjects said they would like to emigrate. Where does this high degree of American self-satisfaction come from? Casual outsiders sometimes see it merely as a bad case of national smugness and complacency. But more careful analysts are ready to admit that it is anchored in several cultural beliefs that have always been typically American. First, there is the unshakable belief that a man born in a log cabin may well become president of his country. Translated into the business world, this means that even the office boy may one day become the company's CEO. This doesn't happen often these days, but freedom of opportunity remains a cherished American tradition. A second cultural belief which American businessmen refer to with pride is that positions of corporate leadership are filled strictly on the basis of merit. It is ability, not one's family or wealth, that gets a person to the top. This, in turn, leads them to the happy conclusion that America's leaders, whether in government or business, are the best to be found. Finally, there is a strong preference and enthusiasm on the part of Americans for their own version of a regulated free-enterprise system. There is little doubt among foreigners that U.S.
businessmen have no intention of embracing communism, socialism, or even the close relationship between business and government that has prompted use of the term "Japan, Inc." Executives in other countries do warn, however, that such intense national pride can become an obsession and blind its followers to what is going on in the far bigger world outside. This has been, they feel, one of the problems leading to the erosion of the competitiveness of U.S. firms in world markets. In the enthusiasm for their own business strategies, policies, and practices, foreign competition was ignored too often. At least one highqevel government official in Washington seems to agree. He adds, "While we were resting on our laurels, companies abroad were making long-term commitments for the future. We were beginning to think we could never lose." The serious troubles of the U.S. automobile, motorcycle, television, and steel industries bear mute testimony to his remarks. The truth is, because America was number one for so long in the industrial world, top managers have found it extremely difficult to balance pride in their own values and behavior with an honest willingness to learn from others. Americans don't want to lose the spine-tingling patriotism and love of country that they feel when they sing "God Bless America." Neither, however, do they want to become so self-
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Business Horizons / May-June1989 assured and righteous in their singing that they fail to hear the different tunes to which other nations are marching-some of them way out in front. Americans and foreigners alike know that this is the dilemma that America's top business leaders face in the 1990s and beyond. aking a "world point of view" is not easy. To see ourselves as others view us from afar requires a deliberate effort to reject a
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pervasive self-reference tendency. It is true that American executives have had a strong tendency to rely almost totally on themselves as reference points in making business decisions. This tendency is very natural. In situations where decisions must be made, the easiest assumption to make is that others will behave as we would behave in similar circumstances. If one is talking about individuals of one's own culture, this assumption can be quite valid. But in the interna-
tional arena, it is a risky path to follow. There is an urgent need today for American top managers to raise their sights, look beyond the horizon, and "do their homework" concerning alternative approaches to common business problems which others have found useful. If this is done, many foreign experts agree that the prestige of American industry as number one could be restored before the turn of the century. []