Key to Your Success: Overcoming Bewildered Japan-U.S. Business Cultures
Interview with Ralph Inforzato, Former Chief Executive Director of JETRO Chicago
Ralph Inforzato (L3) at JETRO's Japan Pavilion at BIO 2016 (Credit: JETRO Chicago)
Both Americans and Japanese inevitably face great cultural differences between the two countries when they engage in business talks. Mr. Ralph Inforzato would be one of the best persons to ask some guidance to reduce frustrations due to the different business cultures.
Ralph Inforzato is Special Advisor and former Chief Executive Director of JETRO Chicago (Japan External Trade Organization in Chicago), who has worked for Japan-U.S. business relationships for 38 years.
Inforzato entered JETRO Chicago in 1984, since then he was a bridge between Japan and the U.S., especially, in the Midwest. He was the first non-Japanese and first American to become Chief Executive Director from 2017 to 2022 to lead the office of JETRO Chicago.
He has worked to promote U.S.-Japan business and achieved remarkable results, especially, in the biotechnology and in the automotive industries. He has also committed to JETRO’s Grass-root activities, a collaborating project with the Consulate General of Japan in Chicago and the Consulate General of Japan in Detroit, which has promoted direct communications with Midwest state governors, mayors, universities and business leaders in the local areas of the Midwest where Japanese companies made significant investments and have built and expanded their manufacturing facilities.
Those his contributions to the two countries were recognized by the government of Japan, and this spring, he received an Emperor’s Award, The Order of the Rising Sun, Gold and Silver Rays.
Interview with Ralph Inforzato
Ralph Inforzato, Special Advisor and former Chief Executive Director of JETRO Chicago (Credit: JETRO Chicago)
Q: Congratulations for being awarded by the Emperor’s Award.
Inforzato: It’s a big victory for my family and me, but it’s also a big victory for my JETRO colleagues because it shows that the government of Japan values JETRO’s work and original ideas for projects that are very successful. So, we are very happy.
Japan-U.S. Business Matching in Bio Industry Field
Q: You looked at the future growth of the biotechnology industry early in the 2000s. You held biotech symposiums more than 10 times in seven Midwestern states between 2004 and 2007. You introduced Japanese biotechnology companies to their American peers and built networks to fully connect the two sides. Those of your activities resulted in a huge success that over 500 U.S. representatives visited Japan between 2003 and 2009. It was literally so many business-matching efforts you made.
Inforzato: It was 2002 and in 2003, we started to contact many leading American companies in the pharmaceutical and biotechnology sectors, universities and research institutions, Argonne National Laboratory, even Harvard University’s Medical School participated because we had realized that Americans wanted to see Japanese biomedical research in Japan. They welcomed the information we brought them about the quality of Japan’s research and asked us to arrange a trip to meet Japan’s biotechnology clusters of companies, universities, and research institutes in Japan. Americans think that seeing is believing. They wanted to go to Japan as soon as we could design a visit and meeting schedule for them. And as we came to know, Americans move quickly.
A trip to Japan shows that Japan has substance, and then Americans say, “Let’s talk more deeply.” So we found out in 2003 to 2010, the key to all of our projects was making sure the American business professionals, and, especially researchers go to Japan.
When we suggested to them a six-day tour to Japan with detailed trip schedules, many of them wanted to go as soon as possible to Japan, even American state governors and economic development leaders wanted to go. The tour and meeting schedules included Japanese university and research site visits and meetings with Japanese companies and universities, all participating in the Japan Bioindustry Association’s annual exhibition and conference, which offered speaking opportunities for our American participants. We also offered JETRO’s customized service to assist them in doing business meetings.
On the other hand, we also asked Japanese biotech companies to come to the U.S. Years ago, JETRO participated in the Biotechnology Conference in Chicago and set up a Japan Pavilion to invite qualified Japanese companies to have a small exhibit booth. JETRO also offered help for them to prepare their presentations and their dialogues with American companies, and JETRO always consistently supported them to develop meetings with American companies, like Pfizer for example. I received such a good response from Japanese companies that they had many more of these business partnering meetings than they had expected.
Americans want Japanese ingenuity
Q: What kind of Japanese companies did you have in the BIO International Convention?
Inforzato: Of the interesting Japanese companies which exhibit within JETRO’s Japan Pavilion are small groups of biotech startups. We helped with their presentations, to make them clear and logical with data. As a result, many famous American companies were interested in talking with them and had meetings with them.
American companies really don’t care at all about the size of the company, so even small Japanese companies having less than 5 or 10 people, may likely have brilliant scientists with very interesting innovations. American companies want to speak to those Japanese scientists. It’s Japanese ingenuity. All American global companies want Japanese ingenuity. Americans trust how closely Japanese scientists adhere to the scientific method and trust Japanese generated data on their discoveries.
During this period, before 2003 to 2008, American companies like Genentech said to our Japanese biotech companies that we know your science is good, just please show us some data and we’ll proceed with you. It was so exciting for me to work on these projects from 2002 through 2022.
Realize the Power of “Made by Japan”
Q: What is your advice to Japanese companies to get more attention from Americans?
Inforzato: Always use “Made by Japan,” to promote and market your products, technologies and services in the United States. I am always telling, even sometimes scolding Japanese company executives to place in all their marketing materials and place even in their company’s annual reports, “Made by Japan,” because of its high-quality brand which is magnetic for all Americans. Shamefully, most Japanese companies do not recognize the power of Made by Japan and therefore lose many meeting opportunities in the U.S. market.
I insist they have to put “Made by Japan,” not made in Japan because Japanese companies make a lot of technologies which are designed in Japan, however, they are actually made outside of Japan. That is “Made by Japan,” because this shows that Japanese quality control is seamless wherever the product is designed, made, and assembled. Japanese companies, you have to put that down. That is “Made by Japan.”
Finding Mutual Benefits in Automobile Industry
Q: You have worked for stable support for Japanese automobile manufacturers and parts suppliers while you were creating new business opportunities between the U.S. and Japanese automobile industries.
You also held many monozukuri seminars for both Japanese and American parts suppliers to improve their product quality.
Those your activities were recognized by the Original Equipment Suppliers Association (OESA), and OESA gave JETRO a privilege to bring Japanese suppliers to participate in its business meetings where only OESA members were allowed to come.
Could you talk about those activities?
Inforzato: We realized how very difficult it is for Japanese suppliers to develop business with American domestic automotive companies. So, we asked Japanese suppliers to join us in doing a Japan Innovation Day within the headquarters campuses of American automobile companies.
Our JETRO Chicago team contacted companies like Fiat Chrysler Automobiles in Michigan, now it is called Stellantis, to request if we could bring Japanese suppliers and let JETRO organize an exhibition showing Japanese technologies within its headquarters campus. We made a convincing proposal by saying to the Fiat Chrysler representatives that “Your purchasing managers, engineers and researchers are able to easily visit our exhibit to see what Japanese suppliers can offer to you. We are bringing Japanese innovation to you.”
Within the Chrysler campus, it is one of the world’s largest buildings, at this time, over 14,000 Chrysler employees were working, and about 4,000 out of 14,000 were involved in purchasing, engineering, research and development or business development. Chrysler warmly welcomed JETRO’s idea because they could see Japan’s Innovation Showcase companies in person. Remember for Americans, seeing is believing and Japanese innovation is on the Chrysler campus is believing.
I think 24 Japanese parts suppliers participated in JETRO’s Japan Innovation Showcase, and about 500 people from Chrysler came to our exhibit. Isn’t it amazing? The Japanese side could speak to the right people in Chrysler. It was such a big success, and we, led by my colleague, Kevin Kalb, did the same type of Japan Innovation concept with the Ford Motor Company and General Motors.
Those automotive campus innovation projects were done in the 2000s. Many Japanese suppliers were having a difficult time to reach out to the appropriate persons to introduce their company and products and technologies. Yes, some Japanese companies started doing business with Chrysler.
Chrysler also wanted to meet smaller Japanese suppliers, but unfortunately, they did not have enough capacity to supply Chrysler. For me, it was good to hear when Chrysler said, “You cannot supply us, but you can meet with our R&D department. We want our researchers to meet you because, for example, they need these types of new materials.”
Ford and GM made the exact comments that their R&D divisions were always interested in innovation from Japan.
Q: How were the monozukuri seminars and letting Japanese engineers speak?
Ralph Inforzato (L) with a craftsman making chains at the Peerless Industrial Group (Winona, MN) which is part of the KITO Corporation (Yamanashi-shi). (Credit: JETRO Chicago)
Inforzato: Monozukuri seminars happened before our automotive campus exhibitions on Japanese innovation. Both Japanese and American engineers were talking about how to make better parts and components, so that we brought Japanese engineers to speak, for example, from Denso in Maryville, Tennessee. They explained Denso’s version of monozukuri in Japanese with simultaneous English interpretation. Japanese engineers all want to speak about their company’s mindset on monozukuri, making excellent products.
We at JETRO gave Japanese engineers a chance to speak in their own words on how they have dedicated themselves to quality and to developing quality human resources. Importantly, we let them explain in Nihongo, Japanese language. Japanese engineers are the very best speakers who reflect the Japan’s commitment to all aspects of quality, and we gave them a chance to speak to their American peers.
We also featured Mr. Nanpachi Hayashi, Senior Technical Executive and Advisor for Toyota Motor Corporation to speak at a Monozukuri program in Novi, Michigan in December 2011. Hayashi-san told me he began his career at Toyota in the mid-1960s and was greatly influenced by Toyota’s most influential engineer, Taiichi Ohno. Hayashi-san played an important role in re-building Japan’s automotive supply chain in less than three months after the Great East Japan Earthquake and Tsunami in 2011. He explained in detail for over an hour (in Japanese) how he and his team did it. For monozukuri, he said, to me, “If you want to make a perfect car, you have to first make a perfect human, that’s how Toyota thinks,” He meant that entire concept of monozukuri is continued human resource development. After he spoke for one hour, there was a standing ovation for Hayashi-san.
The Importance of JETRO’s Grass-roots Activities
Q: Could you tell us about the Grass-roots activities? How did local people respond to it?
Inforzato: The local people, governors, mayors, and their economic development teams are so happy to see Americans who are managing, working and building their careers at Japanese manufacturing plants.
Ralph Inforzato (R) with the government Leadership from the City of Washington, Indiana and Ichiro Sone (R3), then Chief Executive Director of JETRO Chicago (2016). (Credit: JETRO Chicago)
One time, when we visited a Japanese production facility in Washington, Indiana, always I try to meet as many American team members as I can to ask them what they are doing and how do they like working in a Japanese company. I talked with a young lady who was working in the plant. She said, “I’m in charge of quality control. I must analyze parts, measure them, and make sure they meet our standards. It is extremely important that our parts are perfect. I’ve been working here for one year. And I love this job. I want to work here for 30 years. I earn a good wage, and I have very good healthcare benefits, a 401K and life insurance for the first time. I have two children, and they didn’t get the flu this year because they were fully vaccinated. This company pays my medical insurance. I need this company to succeed for the next 30 years. It’s giving me a good life.”
I quickly asked the Governor of Indiana, Eric Holcomb, to come over to meet and listen to her, and she said the same thing to him. The governor immediately said, “I will fully support this company.” That’s the Grass-roots impact right there. And we have to keep doing these types of visits. Americans have more than jobs within Japanese companies, they have built careers. It is important that the American public understand how greatly Japanese companies have contributed to the U.S. economy.
We met Governor Doug Burgum of North Dakota three years ago. With so much oil, gas and agricultural commodities, like soybeans, this state has so much potential to develop much business and investments with Japanese companies.
I offered to help if they wanted to visit Japan. I insisted to Governor Burgum that JETRO will assist you and help you develop relationships in Japan. We worked very hard to support and coordinate support the governor when he led his team to Japan in November 2022.
Governor Burgum and his team made a full presentation at a public event at JETRO Tokyo to show Japanese businesses how welcome they are in North Dakota.
Inforzato (R) and his top colleague Tsubasa Hashimoto organized a Japan Career Day at Oakland University in Michigan. (02/2019) (Credit: JETRO Chicago)
We, especially my colleague, Tsubasa Hashimoto, helped them to make sure they could meet the Keidanren and we helped them visit Ibaraki Prefecture. That’s the importance of our Grass-roots activities, too. (The State of North Dakota presented its 2022 Global Ambassador award to JETRO Chicago for assisting this visit to Japan.) That’s Grass-root, too.
Continued Bewildering Differences in our Business Cultures
Q: You are an American and well versed in the business cultures both in the U.S. and Japan. Could you tell us the differences?
Inforzato: It’s striking to me about how very different our business cultures are. I think the differences are becoming wider.
First, the American side has never understood and may never understand is that nearly all Japanese that are a critical part of the business decision making process are engineers. The Japanese economy is an engineer influenced economy much, much more than the U.S. economy. In the United States, during the late 1980s, MBA graduates begin playing a powerful role in the America’s global businesses. So, there is a fundamental philosophical difference between the business cultures.
MBA managers move quickly to develop business, they measure risk better than anyone and they measure their potential return on investment. While Japanese engineers, who are decision influencers, are very deliberate, averse to business risk and opposite from the American MBA’s mindset. You cannot push Japanese engineers … ever. They are stubborn, and all their logic is and their view of business, everything is sequential.
I noticed a lot of frustration when American managers meet with Japanese managers. So, before they meet, I must tell the Japanese side that the Americans are MBAs and will try to move quickly. Just be patient, I tell the Japanese side to explain to them about your career history so they can understand how you think.
On the other hand, I told the American side that you are dealing with Japanese engineers, so first you have to listen to them in a polite manner and you have to remember that you cannot push them to make any decision that they are not ready to make.
The second is meishi, business cards.
Americans no longer use meishi, and have, for example, moved to Linked-In, but for Japanese, meishi still represents who you are and where you work. We always advise Americans to carry business cards when they meet Japanese; otherwise, they will not have a good start. Many Americans are surprised when we tell them about the importance of meishi. This is much less knowledge about Japan’s business culture among Americans today compared to 40 years ago.
The third is company structures. Many American companies are so horizontal, and I’m sometimes confused on roles and responsibilities for the American team members I’m speaking to. And many American companies I meet are in a constant state of business restructuring.
However, most Japanese companies are vertical and still very hierarchical. The difference in U.S. companies structures confuse Japanese businesses and they can’t find out who the decision makers are in the American company or for example, the American they have a good relationship with is suddenly transferred to another department. Americans don’t understand how weak their relationship management systems are in reality.
The difference between the two business cultures was hard to me, but when I figured it out and gave my advice, I really got a lot of respect from the Japanese side and the American side.
Q: By the way, why did you choose JETRO as your work place?
Inforzato: It was a bubble time, and many Americans thought Japan would take over the U.S., so I wanted to learn about that, but no one talked about Japan’s business.
My teacher, Akira Iriye at The University of Chicago advised me, “You should work at an economic and research institute like JETRO, so you can learn a lot from them.”
I applied for JETRO and then I started as a researcher.
Why is Bass Pro So Common in Japan?
Inforzato (L) with Ambassador Clayton Yeutter (C) and Ichiro Sone. Clayton Yeutter is the former head of the CME and U.S. Trade Representative for President Reagan, He was JETRO’s dear friend. He always encouraged JETRO to brief all American governors on the value of Japanese investment in the United States. (Credit: JETRO Chicago)
In the middle of the 1980s and throughout the 1990s, there were such large trade related issues that the U.S. government demanded Japan to immediately import more from American companies. The U.S. Department of Commerce asked JETRO how we could help American companies’ export to Japan. We had to meet with hundreds of American companies that were interested in exporting to Japan and had interesting products and good management. We had to evaluate so many companies and their products.
We found very interesting companies all over the Midwest and their products were unique. We met American managers, and then introduced the purchasing managers of Japanese trading companies to them. We set up hundreds of hundreds of meetings in the Midwest.
Bass Pro Shops in Springfield, Missouri became one of the successful export companies to Japan, especially, bass fishing boats. Hardwood lumber companies from Indiana were also another great exporter to Japan. All of a sudden in two years from the first large scale exports of hardwood lumber to Japan were made, the Midwest saw a 25% hike in hardwood lumber prices because exports multiplied to Japan. One Indiana hardwood company had 75% of their total sales for several years made by exports to Japan.
So, we have many American companies to develop export markets to Japan. JETRO did that.
I visited Indiana over 300 times in my career at JETRO and visited all 92 counties, too. We were so warmly welcomed by Hoosiers.
On the other hand, we had to be very honest to tell American companies, “You are not ready to export to Japan because customer specifications are so demanding.” For example, a vineyard in Michigan made perfect cherry wine which resulted in high interest by Japanese trading companies, their interest was so phenomenal.
To my shock, only one third of the initial trial shipment of their cherry wine was accepted by the Japanese trading company. There were two reasons: some wine bottles were scratched and many wine labels were off center or torn. The Japanese side indicated to the Michigan vineyard to find a bottler that will provide you with clean bottles and place the labels perfectly. The Michigan vineyard told us that they have been using their bottling company for years and they saw no reason to change for exports to Japan. If the cherry wine tasted so perfect, then, they could not understand the problem. It was emotional and this type of inattention to detail happened a lot.
Many Americans said that the Japanese market was open, but it was just too demanding for them because Americans didn’t care about less important parts of a product, such as little tilted label on a very slightly scratched bottle. So, Americans learned an important lesson in the 1990s, that Japanese want to buy perfect products, even their packaging must be perfect.
Recent Trends through the Eyes of Inforzato
Q: Could you tell us what you have seen in recent years?
Inforzato: It’s 2023 now. No other time in my experience have I seen so much, high interest in Japan from Americans. They are totally focused on Japan; they want to go to Japan tomorrow.
During the pandemic, Americans often called me asking, “Can we go to Japan?” They said they were worrying about their sister cities in Japan or worried about Japanese companies who had invested here in their communities. It is important for Japanese to realize that your American friends want to see you in person, they want to see you smile and hear your voice in person and not through the Zoom platform.
Photo left; Inforzato (R) with the Indiana and Ohio Mayors, all of whom have a passion for Japan and supporting Japanese companies, 07/2022.:
Photo center: Inforzato (L) with Ohio Governor Mike DeWine and First Lady Fran DeWine in Columbus, Ohio, 08/2019.
Photo right: Inforzato (L) with Nebraska Governor Pete Ricketts, 08/2021. He is such a good friend of Japan. (Credit: JETRO Chicago)
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There is a real resurging interest in Japan as the pandemic come to an end. For example, hundreds of Americans are studying the Japanese language in the University of Minnesota and in colleges in and near the Twin Cities.
St. Paul and Nagasaki are the most precious of sister cities, and the Minnesota people genuinely want to have as many Japanese friends as possible. People from Minnesota are so interested in Japanese culture from visiting the pottery kilns of Arita-shi to visiting Japanese gardens all over Japan. It’s so heartwarming for me to see how active the Japan America Society in Minnesota is in expanding the Minnesota’s relationships with Japanese.
After visited Japan, Americans often say to me, “It was one of the best trips in our lives.” Many people told me, “Japan is a country of peace. Japanese walk-in peace. We do not have to worry when we were in Japan, we are happy in Japan, and we learn so much.” So for me, what I learned from this was that Americans, as the COVID-19 pandemic winds down, have to reconnect themselves with Nippon.
So what I’m doing is telling Americans about the 2025 World EXPO Osaka, Kansai. The U.S. Pavilion will be near the entrance of the World EXPO, and at least 120 countries will have their pavilions, so I say to all Americans, governors, mayors, and businesspeople if you go to the World Expo Osaka, you’ll have a wonderful memory for the rest of your lives.
They want to go the World EXPO in Osaka, but they also want to visit Kyoto, Hiroshima, Nagasaki, Tokyo and other places. So the 2025 trip will be World Expo Osaka Plus Japan.
Americans are thinking about this now, and I believe that the 2025 World Expo Osaka really will be a key to tightening the U.S.-Japan friendship.
Japanese Food is Wanted in the U.S.
Q: Compared to the 1980s, we can now get many Japanese foodstuffs at local stores.
Inforzato: I hope more and more Japanese companies find out that their products will be very, very welcomed in the U.S., especially, food products.
Many American chefs are really innovators. I’m always telling Japanese companies that please bring your products here because America’s chefs are creators, they are innovators. In America, innovators will find it and use it. And that’s your market.
That’s really important for Japanese to understand. Japanese companies have very specialized products which Americans cannot find. For example, rice oil is very good because it burns at high temperatures, and food is crispier. Now, American chefs know it and are seeking it.
We really have to work hard to promote very unique Japanese products to the U.S. The more unique the better, even if they are expensive. Price wise, American customers don’t care. They want it because Japanese food products are unique, and Japanese food ingredients result in innovative dishes which are much more attractive to customers. Americans will happily purchase Japanese innovation, even food innovation.
So I think in the future, Japanese food products and ingredients will capture the U.S. market because they are so unique and so innovative.
Always See Genba, Actual Scene
Q: Could you tell us your deepest impression during 38 years of your career?
Inforzato: When I entered JETRO Chicago, our Jicho, Executive Director, was Mr. Toshio Nakamura. He was a dynamic man and was not afraid of anybody.
He always believed to that you have to travel and visit American and Japanese companies, universities and local governments and engage them in a vigorous discussion about Japan or the U.S.-Japan economic relationship.
Nakamura-san said you have to engage people that are criticizing and bashing Japan and find out what is the cause. Why are they saying these negative things about Japan? You cannot sit behind the desk all day. You have to go out to genba or where the action is taking place.
Tatsuhiro Shindo (L), former Chief Executive Director of JETRO Chicago and former Ambassador to Uruguay, meets Indiana Governor Mike Pence (05/2013) (Ralph Inforzato is the photographer) (Credit: JETRO Chicago)
Another story is about Mr. Tatsuhiro Shindo, former Chief Executive Director of JETRO Chicago and former Ambassador to Uruguay. He always said, “Only when Japanese and Americans were working together as a team. So then we accomplish a lot.”
As the Ambassador to Uruguay, Shindo-san took a Sakura initiative to commemorate the 100th anniversary of Japan-Uruguay relationship. He visited all 19 Prefectures in Uruguay and met all governors who planted sakura trees. Shindo-san and the Government of Uruguay made a promotional a Uruguay-Nippon postage stamp, which was designed by a local high school student, who won a nation-wide stamp-design competition.
Inforzato (R) and his top colleagues, T. Hashimoto and Kelly Highland, on our way to Tokyo, 09/2019. (Credit: JETRO Chicago)
So everywhere I go in the Midwest, I always ask mayors, “Let’s plant sakura.” It’s a sign of welcome for Japanese. So mayors want to plant sakura.
If Nihonjin (Japanese people) and Americans are the same team, they harmonize, they can do anything. I’ve seen it. They can do anything.
Great Teacher
Q: Inforzato san, you are very lucky person to meet your wife Takae san. I believe she helped you to understand Japan’s life style and way of thinking.
Inforzato: Yes, she did. Niponjin live a humble and simple life. That’s what we do.
Years and years ago, I first visited her parents’ home in Kanagawa to greet them (aisatsu) although she was living in New Jersey at the time. It was a good middle class Japanese family.
We have a son. When our son entered elementary school, my wife said she wanted to work outside our home, and she found a job within a week. My wife is so very smart.
She continued to speak to our son in Japanese, so our son speaks fluent Japanese. I am very happy to live a humble and simple life.
However, I was working very hard, and I became very demanding of my family, even pushing my JETRO colleagues very hard throughout my career. I do not know how they put up with me. I am very grateful.
Q: Thank you very much.