To talk about problem-solving or decision-making within a national environment means examining many complex cultural forces. It means trying to measure the impact of these forces on contemporary life, and also coming to grips with changes now taking place. In Japan, the most important thing is what organization you work for. This is of extreme importance when trying to analyze the direction-taking or decision-making process. At the least, it explains the greater job stability in Japan, in contrast to the great job mobility in America. While we differ in many ways, such differences are neither superior nor inferior to each other. A particular pattern of management behavior develops from a complex mixture of unique cultural factors — and will only work within a given culture. Let me try to describe three or four characteristics of the Japanese environment that in some way affect decision-making or direction-taking and problem-solving. These characteristics are related to each other. First, in any approach to a problem and in any negotiations in Japan, there is the "you to you" approach, as distinguished from the Western "I to you" approach. The difference is this: in "I to you", both sides present their arguments openly from their own point of view — they state what they want and what they expect to get. A confrontation situation is thereby set up, and Westerners are very skillful in dealing with this. The "you to you" approach practiced in Japan is based on each side — automatically and often unconsciously — trying to understand the other person's point of view. Thus, the direction of the meeting is a mutual attempt to reduce confrontation and achieve harmony. A second characteristic is based on "consensus opinion" and "bottom-up direction". In Japan great consideration is given to the thoughts and opinions of everyone at all levels. This is true of both private enterprises and government ministries. In Japan there is a drive for unity within the group — whether it is family, company, or Parliament. The difference is that Western style decision-making proceeds mostly from top management and often does not consult middle management or the worker while in Japan, ideas can be created at the lowest levels, travel upward through an organization and have an impact on the eventual decision. This is "bottom up". There is also a characteristic style of communication in Japan that is different from the Western way. The Japanese business person works to achieve harmony, even if the deal falls through, and will spend whatever time is necessary to determine a "you to you" approach, communicating personal views only indirectly and delicately. This places time in a different perspective. In Japan the Western deadline approach is secondary to a thorough job. Owing to this difference in emphasis, the Japanese are thorough in their meetings as well as in their production. Thus Americans are often frustrated by the many successive meetings in many Japanese businesses. But where the American is pressing for a specific decision, the Japanese is trying to devise a rather broad direction. On the other hand, once a given agreement is made, it is the Japanese who sometimes wonder at the slow pace in which Westerners implement the decision. The Japanese are eager to move forward and Westerners, perhaps, lag behind as they take the time for in-depth planning. 
Now, while Japan's industry and technology are highly developed, they have not replaced the fundamental force of human energy and motivation. By that I mean that the Japanese take great pride in doing a job well and getting it done no matter how much time is required. There is a commitment and sense of responsibility which have not yet been discarded in this age of machines. In my field — finance and securities — I am often asked by Westerners how Nomura Securities has managed to escape the paper traffic jam that American firms have faced. We, too, have had that problem. The Tokyo Stock Exchange often has between 200 and 300 million transactions a day. This volume is many times more than that of the New York Stock Exchange. How can it be feasible to handle this load? First, we have very sophisticated computers. Second, and most important, the operational personnel responsible for processing all these transactions stay and stay until the job is done. Perhaps in 20 years — or sooner — they will be more Westernized and insist on going home at five o'clock. But today, still, most insist on staying until the job is done. There is a sincere concern for quality. This willingness to help in a pinch is an important aspect of Japanese problem-solving, and you find it at every level. Some years ago, the Matsushita company was having a very bad time. Among the many measures taken, Mr. Matsushita, the founder and then chairman, became the manager of the sales department. Also, when we at Nomura converted to computers about five years ago, the new system eliminated the jobs of 700 people. We did not dismiss these people; rather, we converted them to securities sales people and some of these are now our leading sales people. Provided there is intelligence and a willingness to exert yourself, there is a place within the company to try and to succeed. In Japan, a person's capabilities are not forced into an inflexible area. And we feel the company owes a worker something for loyalty and commitment.
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