The Intersection of Management and Culture — Enhancing "CQ," the Quality Following IQ and EQ

Ryukichi Miyabayashi
Dentsu Inc.
DENTSU SOKEN INC. is exploring Japanese ideas, culture, phenomena, and concepts with experts as part of its 'Japanology Project,' seeking those with global dissemination value. This installment examines key points for engaging with different cultures and fostering mutual understanding, drawn from a panel session at the international conference "The Culture Factor@Tokyo 2016" held in Tokyo on May 20th and an interview with Associate Professor Geert Jan Hofstede of Wageningen University in the Netherlands, who visited Japan for the conference.

Hearing from Panelists with Extensive Global Experience
"How to Engage with Different Cultures"
The ability to function effectively within diverse cultural contexts is termed "Cultural Intelligence Quotient (CQ)". The Japanology Team at DENTSU SOKEN INC. views CQ as an essential capability for future corporate leaders, following IQ and EQ.
Building on this CQ concept, the team organized a panel session. Five panelists with firsthand global business experience discussed approaches to engaging with different cultures from three perspectives: "Japan in the World," "Crossing Cultural Boundaries," and "Qualities for Doing Business Globally." DENTSU SOKEN INC. Senior Researcher Ryukichi Miyabayashi, who moderated the session, summarized the key points of each panelist's views.

First, understand the relative position of your own culture
Chikako Miyamori
Representative, Itim Japan
International management scholar Geert Hofstede (father of Geert Jan Hofstede) views the world through six dimensions. Here, we introduce three representative dimensions.
The first is the "Power Distance" dimension. This perspective shows how people relate to authority and power. The second is the "Individualism-Collectivism" dimension. This perspective indicates whether individuals relate to society as individuals or as members of the group they belong to. The third is the dimension of "Uncertainty Avoidance." This dimension shows how much ambiguity a society can tolerate. By using this framework to understand where our own culture stands relatively, we believe it deepens our understanding of other countries.
Mutual understanding across cultures is a critical challenge
Yasushi Watanabe
President, Kaeru Inc.
I currently work in organizational reform. Previously, when I was stationed at the European branch of a Japanese manufacturer, I struggled greatly with cross-cultural management as someone raised entirely in Japan. For example, we were required to meet high management targets set by headquarters while simultaneously having detailed reporting obligations to headquarters. This was difficult for local staff to understand. This is a characteristic behavior of Japanese companies, which score high on Hofstede's "Masculinity" and "Uncertainty Avoidance" dimensions, and it was quite challenging to get local people to understand it.
It was precisely because of this experience that I came to feel how crucial it is to possess solid knowledge about cross-cultural understanding in global business.
The attitude of trying to understand the other person's cultural background
Jun Mizushima
Attorney, Nishimura & Asahi
Among the required courses at Stanford Graduate School of Business, where I earned my MBA, significant time was devoted to studying "bias." For example, the Japanese proverb "The nail that sticks out gets hammered down" was introduced by the professor with the observation that this principle applies not only to Japan but equally to the United States and other countries.
Through such lessons, we learn to avoid the traps of bias we often fall into, understand cultural frameworks from a neutral perspective, and practice repeatedly. I believe that the attitude of seeking to understand others through discussion is essential for success in global management and business.
Learning from Kawasaki: Confidently and Humbly
Editor-in-Chief, Courrier Japon
Recently, an article in Courrier Japon featuring Major League Baseball player Munenori Kawasaki became a major online sensation. Kawasaki, who could barely speak English at the time, made fans across America burst into laughter with his broken English and gestures.
He says: "It's true that overseas, the image of 'Japanese people being quiet' is strong. But I think the world also needs Japanese people who don't get emotional and always stay calm. So don't think 'I have to change myself' – just go for it as you are. By taking action and learning from failures, you'll come to understand your own role."
Isn't it necessary to step out into the world with confidence, yet humility?
Cross-Border Organizations Created by Technology Culture
Tomohiro Ohno
President, Kudan Inc.
I worked for major management consulting firms in Japan, then Thailand, the US, the Netherlands, France, Germany, and the UK, yet I rarely felt cultural barriers. This is likely because the world of management consulting demands clear, individual performance that isn't swayed by national culture.
I currently manage an AR/VR technology company with multinational employees across multiple countries. As a small, elite group of specialists, each individual's personality is overwhelmingly strong, and I have never consciously felt cultural discomfort. This might be because technology culture exists as a cross-cutting force that connects diverse organizations.

Exposure to different cultures leads to identity recognition
Mr. Hofstede
Friction with different cultures due to globalization is not a problem unique to Japan; it is also a topic treated with great importance in Europe. Of course, Europe is contiguous, making travel easy, and languages like English, French, and German naturally flow from television, providing abundant opportunities to encounter different cultures. This environment forms the foundation supporting societal diversity.
Particularly crucial is "exposure to different cultures" during childhood. For example, in Japan, who consciously thinks of themselves as "Japanese"? It is only when thrown into an environment different from their own that people recognize their own identity. For Japan, an island nation, the challenge lies in how to ensure this "exposure." To address this, I feel there is a growing need for the development of educational content for cross-cultural understanding, targeting a broad audience from young children to corporate executives.


Cultural Competence (CQ) can be enhanced through education
Takayoshi Miyabayashi
Principal Researcher, DENTSU SOKEN INC.
I believe there are three major takeaways from the sessions and interviews. The first is the importance of maintaining a neutral perspective, free from bias. Living in Japan, we can easily succumb to the atmosphere created by media reports about "Japan as an island nation" and "a shortage of global talent," feeling as if we alone are severely lacking something. However, this is a common challenge faced by all countries and companies doing business globally; it is not unique to Japan or Japanese companies. In fact, courses on cross-cultural understanding are standard offerings at educational institutions in Europe and the United States. I believe we need the attitude to humbly acknowledge what we lack and work to resolve it.

Second is the importance of viewing the world and oneself relatively. For example, Japan is often described as a collectivist country, but this is only true when compared to the United States. Viewing the world relatively reveals that only a few developed nations are fundamentally individualistic, and socialist countries might perceive Japan as having strong individualistic tendencies. Furthermore, observing Western companies struggling with organizational silos, Japan's "ringi system"—often discussed in relatively negative contexts—appears to be a highly effective means for building consensus across organizational boundaries.
Finally, cross-cultural understanding is something that can be learned later in life. While we often hear arguments emphasizing the importance of overseas experiences during childhood to avoid developing biases, borrowing Hofstede's words, what truly matters is not seeing others as identical to ourselves, but cultivating an attitude that respects our mutual "differences." Establishing one's own identity is indispensable for this. Therefore, we believe that no matter our age, we can enhance our CQ, and it is the attitude of continuous learning that is paramount. Currently, at DENTSU SOKEN INC., we are developing and providing diagnostic services for this CQ and organizational cultural understanding. Isn't the attitude of knowing oneself and others, and finding one's own style (i.e., Japanology) within that, precisely the quality required of business professionals going forward?
※When an organization's business processes or systems become self-contained and isolated without collaborating with other departments.
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Author

Ryukichi Miyabayashi
Dentsu Inc.
After working on brand strategy and new business development for financial, telecommunications, and entertainment companies, he developed "SIPS," a new consumer behavior model for the social media era, at the cross-functional Satonao Open Lab. At DENTSU SOKEN INC., he focused on research themes including "corporate culture, cross-cultural management, and internal communication," while developing insights for foreign companies targeting the Japanese market. Completed the Master's Program at Yonsei Graduate School of Business. Currently enrolled in the Doctoral Program at Hitotsubashi University Graduate School of International Corporate Strategy. Part-time lecturer at International University of Japan MBA and Globis Graduate School of Management.