Japan–Western Cultural Differences Ver06_ Is Japan's Nemawashi (Underground Work) Really a Bad Thing?

Mar 27, 2026

Hello everyone,

I'm still recovering from last week's business trip, so it has taken me a bit longer than usual to get back into my rhythm.

In my previous article, Japan-West Cultural Differences_Ver01. _ “What Exactly Is Japan's 'So-Yu-Wakede' Culture? A Look at Japanese and Western Meeting Styles," I discussed the Japanese tendency to conclude meetings with a vague sense of agreement—only to find that nothing was actually decided. This is something I often observe in Japanese organizations.

So, what lies behind this “So-Yu-Wakede” behavior?

1. “So-Yu-Wakede” reflects a uniquely Japanese desire to preserve long-term relationships

In Japan, people tend to value maintaining long-term human relationships more than making quick decisions on the spot.

This may be my personal interpretation, but Japanese professionals are often highly sensitive to others' positions and emotions. There seems to be a deep cultural preference for avoiding conflict or friction.

As a result, behaviors such as:

• avoiding strong objections in the moment

• keeping meetings calm and harmonious

• adjusting opinions individually afterward

tend to occur quite naturally.

2. However, this cultural tendency has undeniably slowed decision-making

While this sensitivity is a strength, it has also slowed down decision-making in many Japanese organizations.

Especially in manufacturing, during the intense global competition of the late 1990s and beyond, slow decision-making clearly contributed to a decline in competitiveness.

• Investment decisions were delayed

• New product launches took longer

• Japanese firms struggled to match the speed of overseas competitors

These patterns were widely seen across Japanese industry at the time.

3. Nemawashi (Underground Work) developed as a form of “pre-decision risk management”

Japanese companies tend to avoid open disagreement during meetings. Because of this, Nemawashi (Underground Work) - aligning stakeholders' views before the meeting - naturally became important.

This is quite different from Western organizations, where decisions are often made during the meeting and adjustments happen afterward.

4. In foreign-owned Japanese subsidiaries, lack of nemawashi often leads to trouble

Based on my own experience, when Nemawashi is insufficient in foreign-owned Japanese subsidiaries, the following issues tend to arise:

• The local team does not move

• Opposition emerges later from people who “were not informed”

• Decisions made in meetings are not executed

As a result, project delays become more likely, and tensions with the overseas headquarters can intensify.

5. At the same time, overseas headquarters also have structural issues

This is an extremely important point.

Overseas headquarters often make decisions behind closed doors and then announce them suddenly without prior explanation.

I have experienced this more times than I can count.

Examples include:

• Organizational restructuring

• Hiring freezes

• Budget cuts

• Sudden changes in KPIs

• Withdrawal of product lines

This top-down style is not unique to Japan- it happens in subsidiaries around the world.

However, in Japan in particular, a lack of prior explanation makes it very difficult for the local organization to move.

Japan expects “prior alignment,” while headquarters often provides “no prior explanation.” This gap can easily stall projects in foreign-owned Japanese subsidiaries.

6. Why PMO becomes necessary

This is where the PMO (Project Management Office) comes in.

A PMO plays the role of translating the differences in decision-making processes between headquarters and the Japanese organization, helping the project move forward.

Yet, who should take on this PMO role? The answer varies by company.

7. Who should serve as the PMO? (In-house / APAC / Outsourcing)

A) In-house: The Japan Country Manager or Division Head

This is the most common pattern. However, in reality, these leaders are often too busy to fully perform the PMO function.

B) In-house: APAC or Regional Managers

They have a broad regional perspective but may not fully understand the cultural background of the Japanese market. As a result, the accuracy of translation tends to decline.

C) Outsourcing: External PMO consultants

When no suitable person exists internally, companies may rely on external PMO specialists.

Advantages include:

• Neutral and unbiased coordination

• Understanding of both headquarters and Japanese cultural contexts

• Professional project management expertise

• Less influence from internal politics

Especially when the gap between headquarters and Japan is large, external PMOs can sometimes move projects more smoothly.

8. Conclusion: Nemawashi is a balance between “relationships and speed”

Nemawashi is not merely a cultural artifact. It can be seen as a practical mechanism for moving projects forward in Japanese organizations.

And PMOs play an essential role as translators bridging the decision-making gap between headquarters and Japan.

If both headquarters and the Japanese subsidiary understand this structure, communication and execution can become significantly smoother.

“So-Yu-Wakede,” I will close here for today.

I look forward to seeing you again in the next article.

If you are facing challenges in managing a Japanese subsidiary, I offer a complimentary 60-minute consultation. Please feel free to contact me at info@metricjapan.com.

Let's work together to put “Think Global, Act Local” into practice.

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#ManagementInsights