Japan’s corporate sector needs to accelerate its decision-making process to keep pace with global competitors. Traditional consensus-based decision-making, while promoting harmony, is time-consuming and ill-suited to the fast-paced digital age. The slow pace of decision-making has led to missed business opportunities and a decline in competitiveness.
Japanese companies need to adopt a top-down decision-making process, similar to that seen in the US and Europe. This model allows quick decision-making, with the CEO having the final say. This approach helps companies to respond swiftly to market changes and capitalise on opportunities.
The adoption of a top-down approach requires a change in corporate culture. However, this change is not easy, as it contradicts the traditional Japanese business model that values consensus and harmony.
The government’s role is crucial in driving this change. The government can incentivise companies to adopt a faster decision-making process through policies and regulations.
The coronavirus pandemic has underscored the need for faster decision-making. Companies that were able to make quick decisions have managed to survive and even thrive during the crisis. The time is ripe for Japan Inc. to change its decision-making process and become more competitive in the global market.
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