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Japanese vs. Western models of decision making

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I was reading a book about The Toyota Way last year (sorry, can’t remember which) and something that stuck with me was a section on Japanese versus Western decision making*. The diagram was something like this:


The crux of it is, Japanese companies like Toyota spend more time preparing for a decision, and less time executing. Western companies reach a decision earlier, and then execution has all sorts of problems. It’s also important to note that Japanese companies often reach the “end goal” sooner.

Preparation involves building consensus, but that doesn’t mean it’s all talk. Japanese companies pioneered set based design and prototyping, which allows them to try out a huge number of ideas cheaply. By the time a decision is made, they’ve “thrown out” about 90% of the work they’ve done!** However, once the decision is made the execution goes smoothly.

It is easy to see how Japanese decision making maps to businesses with a clear distinction between preparation/pre-production and execution/production, such as traditional manufacturing. It can be difficult to map to pure product development. Keep a few things in mind.

  • Consensus isn’t just discussion and design. Big-Design-Up-Front is not preparing for execution. BDUF is a woefully incomplete form of execution. Building consensus means actually implementing things in order to rapidly learn.
  • Consensus isn’t a democracy. Toyota has a very hierarchical structure and people have very clear responsibilities. The goal of consensus-based decisions is to make better decisions, not to achieve some Platonic ideal. Difficult decisions are still made, but the role of the executive is to manage the consensus-building process, rather than “just hurry up and making a decision.”

The Japanese model is built in to cross-functional teams. Consensus isn’t achieved by the heads of Engineering and QA signing some agreement in blood. If that agreement ends up not being a good idea- and it almost never is!- you end up with the Western execution experience. On the other hand, cross-functional teams have much more interactivity and iteration going on, and overall execution is much faster.

People will get upset. Take responsibility for your decisions, and acknowledge some people will get upset by them. However by making sure their concerns are thoroughly heard and discussed before execution, you will make sure they don’t keep pulling things off-track.

Anyway, there’s lots of good writing on this topic, and I highly suggest checking some of it out if it interests you. This is just my software development-centric take.

* I’m just calling these the Western and Japanese models of decision making. They are clearly not the way all decisions are reached in the respective countries. In fact these generalizations may not even be true anymore. Whether Japanese or American companies behave this way is irrelevant. The names are just proxies for different types of decision making.

** Obviously the work isn’t thrown out, since they’ve learned so much from it. But if the effort were raw materials, I suspect 90% of it would end up in the trash, depending on how a set is developed and culled.

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Published at DZone with permission of Rob Galanakis, DZone MVB. See the original article here.

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