Japanese management or the Elon Musk model: why Eastern philosophy is better suited to the growth of Argentine companies

In a country where companies face constant economic uncertainty, more than 150 companies already implement the Japanese management model focused on sustainability, quality and continuous improvement, achieving very positive results. Executives from these companies and specialists explain the reasons for the success of applying the oriental style in local culture.

In a challenging economic context such as Argentina, where organizations face limitations in terms of resources and margins of error, many companies opt for management models that privilege long-term stability and efficiency. Although Elon Musk’s approach, based on disruptive innovation and speed, is attractive and widely admired, many local companies find in Japanese management an alternative more aligned with their needs and reality. This model, focused on sustainability, quality and continuous improvement, allows Argentine SMEs to manage risks in a more controlled manner, optimizing their processes and decisions without compromising their economic-financial stability.

While Musk’s model can be very good at adapting to these changing contexts and “putting out fires”, the Japanese model aims directly at “preventing fires from happening”, they explain from TAHO Consulting, responsible for the Lean Management diploma of the ITBA University and the JAME program in Japan for senior management, through which more than 500 graduates from 150 different Argentine companies have already passed. One of its co-founders and director, Facundo González, points out that any Argentine company could apply this model, “which involves pursuing a shared purpose with a clear long-term vision, working hard on the processes and development of people through positive leaders. that generate teams of excellence, promoting the permanent resolution of problems and thus promoting continuous organizational learning.

5 fundamental differences of Japanese management

1. Team culture vs. individual empowerment
Musk’s style is often noted for his centralized command-and-control leadership. In contrast, the Japanese model promotes team feeling, participatory management in which each member has an active and leading role. This improves engagement and leverages collective experience.

In Argentina, companies such as the auto parts company Cordero SRL implemented practices that promote labor inclusion and the feeling of belonging, with programs such as “Supported Employment”, facilitating the insertion of people with disabilities in logistics and production areas. “This inclusion translated into a significant reduction in absenteeism and a positive work environment, with the learning acquired through Omron Taiyo during our trip to Japan having been very useful,” comments Rosana Cordero, managing partner of the firm.

2. Focus on quality vs. focus on innovation
While Musk is known for constantly launching innovative products, this can come with some risks and high costs. In economies like Argentina, where the margins for mistakes can be small, Japanese management could adapt better. Beyond wanting to satisfy its customers by solving their needs and desires, it understands that loyalty is key to sustained growth and, to this end, it prefers small, precisely directed changes to always improve the perception of quality and value of each product or service. .

The consulting firm TAHO, which organizes immersion trips to Japan for Argentine business leaders, allows you to witness first-hand and understand the value of this approach in situ. «What caught my attention the most and I took away many tools from the companies we visited is the importance that their leaders give to people, while we do so to the expected results. And the duty they feel and have to give back to society for its improvement or happiness from what each company does. With this high objective, the desired result is already implicit and thus it is easier to achieve it,” says Silvio Scarinci, commercial director of Australtub SA.

3. Continuous improvement vs. constant disruption
Musk’s disruption is admirable, but it can be exhausting for team members. For its part, Japanese management is based on the principle of Kaizenor continuous improvement, where each process, no matter how small, is evaluated to perfect it step by step, understanding the consequences of each change.

«In joint work with Ing&Mant, investments for plant adaptation, process optimization and reviewing deviations daily in front of our board with the expanded team and applying Kaizen“We have managed to reduce production stops by 50% compared to those recorded in 2022,” says Alberto Galván, Citrusvil plant manager.

4. 5S methodology: order and efficiency
Japanese management promotes the 5S methodology, an organization and cleaning technique that optimizes the workspace by eliminating unnecessary elements, organizing the essentials and maintaining cleanliness, thus creating an orderly and efficient environment.

«Since we implemented 5S at Industrias Saladillo, I noticed great commitment from the staff. I think this is because the methodology involves them directly in the improvements, making them participants and responsible. In addition, the work environment improved and with this a slight reduction in absenteeism. We also achieved less waste and more efficient use of materials such as rags, brooms and bags. Even logistics times were reduced, optimizing our operations,” highlights Felipe May, industrial director of Industrias Saladillo SA.

5. Decision making by consensus vs. centralized decision
In the West, leadership often centralizes decision-making in a single person or at a top level. On the other hand, the Japanese model encourages decision-making by consensus and collaboratively, including different perspectives and achieving greater acceptance in teams. This strengthens commitment and innovation at all levels within the company.

In this way, Japanese management offers Argentine companies a sustainable path, teaching not only to look for the roots of problems and make conscious decisions, but also to build a solid foundation for the growth and development of local organizations.

“This model has proven to be effective and efficient in optimizing processes and decisions to strengthen the Argentine organizational culture, where companies have no room to face the consequences of a bad decision,” concludes Jorge Anschütz, co-founder and director of TAHO.

Although an innovative launch can bring great successes, it also entails high risks and possible unforeseen costs. Instead, a vision based on many small steps that direct everyone’s commitment would seem to be a more logical and sustainable approach for local realities, allowing Argentine companies to build a path to long-term success.