Why Global Success Depends On Separating Language & Culture | Tsedal Neeley | TEDxCambridge

Summary

In 2010, Hiroshima Kotani, CEO of Japan's largest online retailer, Rakuten, made a groundbreaking decision to switch the company’s official language from Japanese to English to drive globalization. Despite the challenges faced by employees, particularly the Japanese staff who struggled with language shock, the shift ultimately fostered deeper cultural integration across diverse teams. The move proved that language and culture can be decoupled, enabling employees from various backgrounds to collaborate and understand each other better. This shift highlighted English as a bridge to global connectivity and collaboration, overcoming cultural and linguistic barriers in the workplace.

Takeaways

• 😀 Hiroshima Kotani, CEO of Rakuten, announced in 2010 that the company's working language would shift from Japanese to English, impacting thousands of employees worldwide.
• 😀 The move aimed to accelerate Rakuten's globalization, as the company was reaching market share dominance in Japan but needed to expand internationally.
• 😀 Employees had two years to pass an English proficiency test, with failure leading to demotion, making the change a significant challenge for many.
• 😀 The shift raised questions about how employees from different cultures and language backgrounds would cope with this new requirement.
• 😀 The biggest challenge was how non-English speakers, particularly native Japanese employees, would adapt to the English-only mandate.
• 😀 Despite initial struggles, the Japanese employees eventually used English to share their corporate culture and practices globally, showing growth in their adaptability.
• 😀 American employees initially felt relief, but soon faced new cultural expectations, leading to their own form of 'culture shock.'
• 😀 Employees from Latin America, Europe, and Asia proved to be the most open to the language and cultural changes, quickly adapting and excelling.
• 😀 The study concluded that language and culture could be separated, allowing for better cross-cultural communication and understanding.
• 😀 Rakuten's adoption of English created a diverse, global workforce, unifying employees across different cultures and facilitating clearer communication and collaboration.
• 😀 The shift demonstrated that language, while a significant challenge, can serve as a bridge to understanding, compassion, and connection in a globalized world.

Q & A

What was the major announcement made by Hiroshima Kotani on March 1st, 2010?

Hiroshima Kotani, the CEO of Japan's largest online retailer Rakuten, announced that the company's working language would shift from Japanese to English. Employees had two years to pass a language proficiency test or face demotion.

Why did Rakuten decide to make English the company's working language?

Rakuten wanted to globalize its operations and saw a common language as critical for accelerating its international expansion. The company had achieved nearly 90% market share in Japan and needed to grow globally.

How did employees from different countries react to the change in working language?

Japanese employees initially struggled with language shock, anxiety, and long hours but adapted over time. American employees were initially excited, but soon faced new expectations and cultural adjustments. Employees from Latin America, Europe, and parts of Asia were the most flexible and effective in adapting to both the language and new corporate culture.

What was the impact on Japanese employees after the shift to English?

Initially, Japanese employees experienced significant challenges, including language shock and stress. However, within two years, they adapted and used English as a tool to spread their corporate culture both within the company and externally.

How did American employees react to the language change?

At first, American employees felt euphoric and relieved that English was the chosen language. However, they soon experienced culture shock and struggled with new expectations and the need to adjust to a corporate culture that was primarily based in Japan.

What happened to the employees from countries like Latin America, Europe, and parts of Asia?

These employees faced a steep learning curve, both linguistically and culturally. Despite the challenges, they were the most open and flexible in adapting to the new language and corporate culture, ultimately becoming the most effective global employees.

What was the overall effect of this language policy on Rakuten's corporate culture?

The language change led to greater cultural diversity and understanding within Rakuten. Over time, employees from different backgrounds were able to connect and collaborate effectively, breaking down barriers that had previously existed due to language and cultural differences.

Did the change in working language affect the diversity within Rakuten?

Yes, after the language change, Rakuten experienced an increase in diversity within the company. The shift to English allowed employees from various countries to work together more cohesively, fostering a more inclusive and collaborative environment.

What insights did the author gain from studying Rakuten's language policy for five years?

The author learned that language and culture are not inseparable, and that a common language, like English, can serve as an unbiased means of communication, facilitating connections across cultures. The study revealed that language could be used as a bridge to understanding and compassion.

How did Rakuten employees' perceptions of language and culture evolve after the policy change?

Initially, many employees feared that language would dilute or destroy their cultures. However, over time, employees learned to separate language from culture and successfully mixed the two, using the common language to enhance understanding and foster greater connections across cultural boundaries.