What the hockey puck is a keiretsu?

During my ten years working at NEC, I learned so many things about Japanese business practices, the culture, the approach to problem solving, and the philosophies. Although I never became conversant in the language, I was happy with the way I was treated and grateful for the time and attention I was given. I don't think I was alone in this feeling - I believe many other non-Japanese have experienced the same kind of respect and professionalism working in world-class multinational corporations originating in Japan like NEC. At the American companies I've worked at, I've always felt like a number (as that old Bob Seger song) goes, but at NEC I felt like a valued individual. I think alot of this feeling had to do with the concept of the keiretsu (conglomorate), and the kandishoku (management class).....

The Sumitomo keiretsu emerged from the Sumitomo zaibatsu (monopoly) - all zaibatsu were banned in post-war Japan. At the core of a keiretsu is a bank and a trading company, and in NEC's case these were Sumitomo Bank, and the Sumitomo Trading (or was it Holding?) Company. The keiretsu counted on the loyalty of its employees and the cooperation of all its disparate business entities. The way it was explained to me by my immediate supervision, at any given point in time some of the keiretsu's businesses were profitable and some were struggling, so in synchronistic harmony the profitable ones always helped the struggling ones. This maintained balance and assured the continuing existence of the keiretsu as a whole. "Cool!", I thought, "Why didn't companies in the U.S. think that way?" I pondered rhetorically, "Why did U.S. companies always seem willing to eat their young in a short-sighted attempt to increase this quarter's numbers, instead of take a long-term, more collaborative viewpoint?".....

By now I was familiar with the different ranking systems and pecking orders in various and sundry American institutions. The military world had its various forms of ranks, whether it was the Army's private, corporal, sergeant, lieutenant, captain, major, colonel, general or the Navy's seaman, petty officer, chief petty officer, lieutenant, commander, captain, admiral and all the interspersed nuances of each level. The business world too had its various forms of rank, from assistant widgetmaker, associate widgetmaker, widgetmaker, senior widgetmaker, principal widgetmaker, staff widgetmaker, assistant manager, manager, director, VP, president and all the various layers within each management level. So I had a good frame of reference from which to learn the Japanese parlance, which I'd like to share with you. I hope you find it entertaining and interesting..... Below are the ascending order of the anglization of the Japanese words, and my understanding of their meanings. Any mistakes or misunderstandings are entirely my own fault - and any resemblence to reality is purely coincidental.

kan-di-shoku ---> management "class" (degreed professional)
ka-ka-richo ----> assistant manager (typically around 30 years old)
ka-cho ----> manager (typically 40 years old)
bu-cho ----> general manager (typically 45-55 years old, most employees don't attain it)
bu-mon-cho ----> senior general manager
tan-to-bu-cho ---> area vice president
fu-ku-sha-cho ---> VP, Senior VP, and Executive VP
sha-cho ---> President
so-dan-ya-ku ---> advisor, consultant (old, pre-retirement, but not a board member)
to-ri-shi-ma-ri-ya-ku ---> corporate board member, director
jo-mu-to-ri-shi-ma-ri-ya-ku ---> corporate board member, managing director
sen-mu-to-ri-shi-ma-ri-ya-ku ---> corporate board member, senior managing director

I suppose its possible that understanding a little bit more about Japanese business practices and culture may help you someday when dealing with international customers. Or maybe the big take-away is to be sensitive to all the different business practices and cultures extant in the business world today. When you are on a business trip to a far-away place, take the opportunity to understand and genuinely appreciate the people and their ways, and don't always assume that what you think something means in your culture may necessarily mean the same thing in another culture...... When you started reading this you probably thought a keiretsu was some kind of sport, I hope you now understand a little more about the concept and all that stands behind it.....