Sustainable human resource development and Japanese Culture [SBH Part 1 of 4]

In the first of four sessions, we started by discussing what sustainable human resource development is and how it looks like in the modern era. Interest in shifting away from traditional management strategies into sustainable ones is growing, and with that. Yet, social changes, people’s lifestyles and desired work values are also changing.

We’ll discover that the Japanese culture offers answers to many of today’s concerns about sustainable human resources. We have Nariaki Taneda and Toshikazu Numano from Sustainable Business Hub to open the first session.

Discovering the essence of sustainable businesses – Sustainable Business Hub

Taneda: “I have many clients whose businesses have lasted over 100 years. It got me to thinking, ‘What does a 1,000-year-old business look like?'”

This was an essential question that Taneda asked. With recent booming interest in SDGs in Japanese society, businesses are beginning to find interest in sustainability. How could companies become sustainable, measured by centuries? That led to the formation of the Sustainable Business Hub with three other members who shared the same aspirations.

One of the main focuses Taneda is interested in is also rescuing Japanese temples and shrines. Japan has over 150,000 temples and shrines, and many of them face closure due to maintenance and management shortages. He does so by immersing himself in the temples and shrines and assisting them. But he is also analyzing the wisdom in these centuries-old, millennium-old organizations that can be applied to business development and sustainability.

Taneda: “It’ll be extremely beneficial for businesses if we can learn what allowed Japanese temples and shrines to sustain for over hundreds of years.”

The Way of Being defines the Japanese century-old business

If we look at the oldest companies in the world, 9 out of 15 oldest companies are from Japan, with the 9th becoming 1,000 years old in 2024. What are their secrets in sustaining for more than a millennial? We can get some hints by way of comparisons.

There are differences between how a 100-year-old business and a venture business think about human resources. (Of course, there are many similarities too.) One critical difference is their Way of Being (themselves), which is why these veteran businesses continue and sustain. Another key difference is whether they verbalize themselves.

Taneda: “For example, when I worked with companies who have been around for 260 years or 300 years, they have a ‘Way of Being,’ something that reflects who they are. The same phrase ‘Way of Being’ may be used in many businesses, but each possesses a different meaning to each business.”

These Way of Being, or rashisa in Japanese, are not put into words. And yet, there is a successful philosophical penetration throughout the ranks of these veteran businesses. Staff learns these by personally experiencing the businesses’ Way of Being, like through On-The-Job Training (OJT), and experiences this is how the company is and what it represents.

Taneda: “This is different from venture companies we see today. Today’s flexible, fast-growing ventures often pivot, bringing about philosophical changes as their business details change. As such, it is difficult for them to create a Way of Being. Instead, they turn to verbalization, and the result is the wording of mission, vision and company values we are familiar with today.”

And this Way of Being is important in developing human resources. Businesses that have established their Way of Being have a work environment where their staff is united. It also protects the business’ way of thinking, which consequently improves the business itself. Business owners build their companies thinking, “I want my child/niece/nephew to work in this company.” And that is a precious essence in developing human resources and keeping the business sustainable.

Seeking a balance for employee satisfaction and management

Employees want approval and recognition, on top of being challenged in exchange for a sense of reward. For example, managers often deploy different mixes of compliment and reprimand to varying successes. Businesses with a Way of Being seek a balance between the two.

Taneda: “It is highly effective to introduce a complimenting culture into a non-complimenting workplace, but highly counterproductive the other way round. The key is to find a balance. Like in Buddhism, where it promotes the ‘Middle Path,’ the balance will mold the business’ philosophy. The management philosophy is also something centuries-old businesses care about too.”

There are other “Middle Paths” we can seek, too. For example, should a business seek uniqueness or scalability? It is difficult to scale businesses because it is difficult to develop human resources with specific skills. On the other hand, scaling risks the business losing its uniqueness. But why does it need to be only one or the other?

Taneda: “There is no need to demand things be done only in a certain way. Instead, we should ask, ‘Wouldn’t it ALSO be good to do it in a certain way?’ This way, we can manage each professional who has their own unique traits and values. It can also be a business’ unique Way of Being.

“Of course, we should have a goal and direction for the company, or else it is meaningless for an organization to exist. Apart from that, there is the freedom to achieve the goal. Because, be it OJT or artisanal training, a particular teacher teaches a particular student, which births originality (ie, uniqueness). On the other hand, if everyone in an organization shares the same skill, they will be able to provide stable support and products for customers.”

There is consensus that balance is way more difficult to achieve than said, especially in human resource development. It is an ongoing process that promises to be rewarding, especially for business sustainability and staff development.

The motivation for sustainability

We must also not forget that Japan was sustainable and circular before the terms SDGs and circular economy found their popularity today. But what motivates people to adopt sustainability?

Taneda: “There were two aspects. There was a controlling framework that set the law for people to obey and work within. On the other hand, the people held a code of morality, arguably influenced by religion.

“Religion was formed to lift the burdens of human beings, and the burden is different geographically (like Egypt’s desert versus Japan’s greenery). Principles develop differently according to the environment, consequently leading to values and philosophy.

“In Japan, there is a unified culture and a unified environment, which also has an air of reverence. Little verbalization is required in this, which ultimately manifests in businesses too. These Way of Being are passed down successfully through the generations. But I think we are entering an era where we will need to start putting them into words.”

Future-proofing human resources development

In the face of the speed of technological advancements in this age, what skills should be developed for sustainable human resources?

Taneda: “Today, the thinking of people, especially the youths, are getting more globalized. Values are becoming more diverse. In that case, logical thinking and problem-solving skills are skills we will depend on in the future.”

If we talk about the skills that we will depend on in the future, logical thinking, problem-solving, and technical skills are important. But perhaps more important is the development of character.

Taneda: “We’ll need base skills such as business manners and empathy for others. It hinges on the axis of becoming a good person.”

Numano: “It also hinges on how an individual or business find their rashisa beyond just technical capabilities, but also fundamentally what gets accepted by others.”

This is another page we take from centuries-old businesses. Adapting to what is popular in an era is a commonality among them.

Taneda: “We can adapt in the face of change to survive, and, indeed, an organization acts like an organism in this sense. But choosing not to adapt is also an option, especially when the decision requires us to retain our humanity.

“Furthermore, I think the upcoming era is one where people change jobs not for money, but for a rewarding life or career. So it becomes the company’s responsibility to create a rewarding environment. This way, we can retain even the best human resource because they do not want to leave such an environment.”

Old ways versus the new: to change or not to change?

Speaking of change, whether to keep the old ways or to adopt new ones is a very common concern, even among centuries-old businesses. Nevertheless, we get a hint of what to prioritize.

Taneda: “It won’t just be about the employees. More importantly, we should consider the customers, and evaluate and connect with them. We don’t have to change our Way of Being or concepts, but we can change our methods. We may want to treasure methods that were handed down to us, but if it solves a problem for the customers, then we should consider changing.”

That said, it is advisable to ask new staff to learn the inner workings of the businesses, say for three years, before suggesting change within the organization. Numano also reminded participants to focus on the purpose of the business’ existence.

How can we hand down knowledge?

Nevertheless, we can do something to retain the old ways that were handed down to us. It is inevitable that knowledge will deviate. We see this in the artisanal trade, where artisans learn the trade from their masters. Their skills will be a little deviant from their masters’, which becomes the student’s own style. But how would he pass on the master’s “original” form to a new generation of artisans?

Taneda: “We should consider leveraging on ‘outsiders.’ As outsiders, we understand the wonderfulness of things like artisanal skills. Thus, outsiders can help verbalize them and even put those skills into words.

“There are some who feel that they need to hand down the knowledge personally, but we can still use outsiders help like getting feedback from current customers.”

And we should accept the help when offered. Often we hear city dwellers praise the resources that rural regions have that those living in rural regions do not realize. The same phenomenon can be seen in the artisan industry. Involving “outsiders” can help capture the treasured value in the trade. Or else, without understanding why, without realizing the value in their work, new blood may quit the trade prematurely.

Essence of the Japanese people

Be it a 300-year-old or a 1000-year-old company, centuries-old businesses may not have Mission, Vision or Value statements, or use complex strategies. But their Way of Being has allowed them to be sustainable for hundreds of years. Be it an individual or an organization, the essences that we have discussed today give us a framework to achieve the same successes these businesses have.

Taneda: “I think what makes us Japanese is the factor and essence in the way we think. For example, our patience, respect for others, respect for the rules. By amassing all these factors, the Japanese are strong in face of adversity like recessions. In other words, if we have more Japanese who think in terms of these factors, the more resilient our society becomes.”