Ultimate guide to Ringisho

Takashi is a mid-level manager at a Japanese electronics company. His team has been developing a new type of smart home device. Takashi believes it would be beneficial to add a feature that integrates with popular home assistants, like Alexa and Google Home. In order for his idea to be executed, Takashi needs to get a consensus from various stakeholders. To gain approval, he creates a formal proposal document called, Ringisho (稟議書). 

The Ringisho method is a bottom-up decision-making process unique to Japanese business culture. In simple translation, Ringisho means approval form specifically for a proposal, this Ringisho is then circulated to relevant parties and superiors to obtain approval of a decision. The essence of Ringisho decision making is consensual and hierarchical approval that is deeply rooted in Japanese business culture. In this article, we will cover the culture, process, and benefits of Ringisho, along with advice for foreign businesses to adapt to this method.

What is the Ringisho method and why you should understand it

Japanese corporate business culture. The culture of decision-making is derived from Japanese values for seniority, consensual decision, meticulous documentation and group harmony. Ringisho is necessary for large-scale projects including new project proposals, large asset acquisitions, organizational reforms and budget or increase requests. Foreign businesses may not need to adopt Ringisho internally, but understanding it aids in building long-term partnerships in Japan. Understanding Ringisho is important not only in collaborating with Japanese enterprises but also to enhance their reliability as a venture. Listen to Evan Burkosky and Christian Nielsen’s seminar on BRB Sales in Japan to understand more about Japanese sales methods. 

General structure of Ringisho

Originally, Ringisho would be circulated in paper-based form. However, many companies have shifted to use Ringisho in a digital format. Although the format of Ringisho differs by each project, the general structure of Ringisho should have the following sections:

1. Content: Subject (Title of proposal), objective, execution date, supplier/client, payment, attachments
2. Administration: Ringisho number, proposer, proposal department & date, approval date, person in charge (PIC) approval, settlement column (seal/signature)

Check out our Ringisho template below for reference:

How to write a Ringisho effectively

When writing a Ringisho, format comes second to the actual content of the request form. If not well-written, the Ringi process can be lengthy or even unsuccessful, and by unsuccessful, we mean not approved. To write a Ringisho that is not time-consuming, there are five things to keep in mind: 

1. Use clear and concise words: A Ringi form should be easy to understand by all stakeholders that are involved in the approval process. Avoid using technical terms and abbreviations that are difficult to understand. DXPO also mentions that writing the 5W2H of the project clearly will be helpful in writing a Ringisho. It is also important to consider the general readers’ perspective when reading the Ringisho.  
2. Incorporate factual numbers or charts for a better understanding: Presenting real data in Ringisho can help accelerate the approval process. By providing numbers of visuals of the sales forecast, calculation of cost and other statistics, it enhances the Ringi form credibility to the superiors. 
3. Be mindful of your tone and language: Ringisho is circulated to a company’s higher management team. This is why it is important to use respectful language and polite expressions to gain approval and trust for the project submitted. 

How does the Ringisho system differ from Western decision-making methods?

The concept of Ringisho is far different from the typical process in Western countries where agility is prioritized over hierarchy, particularly in the US. For insights into how Japan’s cultural values shape corporate practices, including seniority, refer to our Japanese Corporate Culture. In this section we will compare the different values that go into decision-making between Japanese Ringisho and the general Western decision-making method.

What are the long-term benefits of adopting the Ringisho approach?

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While some argue Ringisho slows decision-making, this traditional Japanese approach offers significant long-term benefits, as discussed by Evan Burkosky and Christian Nielsen in our panel discussion:

1. Transparency: Ringisho involves documenting the decision-making process in detail, keeping everyone informed about the project’s progress and decisions along the way. This record-keeping clarifies accountability and the reasoning behind each decision. Evan shared that in his experience as a manager in a Japanese company, Ringisho documents physically circulated for approvals, with each stakeholder adding their seal. This process ensured clear understanding and accountability across the organization.
2. Better Group Alignment: Because Ringisho requires multiple approvals, it ensures that everyone involved is on the same page before moving forward. This shared understanding reduces the risk of conflict later on and helps avoid the blame game if things don’t go as planned. 
3. Encourages Careful Review: Since all stakeholders are involved in the approval process, they’re more likely to pay careful attention to the proposal. The requirement to review the Ringisho thoughtfully allows for constructive feedback and helps catch potential issues early. For example, Christian noted that clients like Toyota expect data-backed proposals, prompting stakeholders to assess each proposal aspect thoughtfully.
4. Fewer Inefficient Meetings: In Japan, circulating the Ringisho serves as a way to reduce the number of meetings needed for project pitches and approvals. By addressing concerns and gathering input through the proposal itself, there’s less need for constant in-person discussions. This reduces unnecessary meetings and enables asynchronous feedback, as seen in Evan’s experience, where Ringisho documents facilitated alignment without frequent disruptions. 

3 Japanese business methodologies relevant to Ringisho

1. Newamashi: Newamashi (or 根回し）is a Japanese business practice for laying down the groundwork for a decision. This is done by arranging an informal discussion, usually before a formal meeting to gain consensus and ensure quicker approval in the formal decision-making process. Newamashi, generally, is arranged before Ringisho takes place, allowing stakeholders to express concerns and gather support in a less formal setting. Arranging a newamashi is important for a smoother Ringisho. For more detailed information on Newamashi, read our guide to Japanese Management. 
2. HoRenSo: HoRenSo, an abbreviation for Hokoku (報告 or Report), Renraku (連絡 or Contact) and Soudan (相談 or Consult), is a Japanese consensus problem solving method. Unlike America’s “self-starter” culture, Japan prioritizes group consultation when facing issues. This culture is embedded from the rice cultivation practice which required village cooperation and also their respect for seniority. Being around for longer in a company means having more experience and for that reason, new employees are always trained to report to their seniors when facing problems. HoRenSo also plays a role in ensuring a successful Ringisho by maintaining ongoing communication with stakeholders, keeping them informed and consulting on potential issues.
3. Kessai: In Japanese business, Kessai (決裁) refers to the final approval or authorization for a proposal or decision. It represents the last step in the ringi decision-making process, reached once all the necessary stakeholders have provided their seals or endorsements. After the Ringisho has been reviewed and approved by the relevant parties, it moves to the Kessai stage, where a higher-ranking decision-maker, such as a department head, senior manager, or executive, gives the final authorization. Once signed by the top authority, the Kessai is then returned to the person who initiated the proposal.

How can foreign enterprises train their teams to understand Ringisho?

Understanding cultural differences is crucial for even foreign companies expanding their Japanese market. Making adaptations in their decision-making approach, especially when interacting with Japanese partners, creates an immense impact in the long run. If you’re curious to learn more about Japanese business culture, check out our podcast episode on Japanese business culture with Rochelle Kopp. In Japan, a hierarchical, top-down approach is common, requiring approvals from higher levels and emphasizing consensus and alignment with company values, while Western companies often adopt a more decentralized approach. Navigating these differences effectively requires integrating both styles to foster collaboration.

Here are five pieces of advice foreign enterprises can use to train their teams to understand the Ringi process and adapt to Japanese decision-making practices:

1. Maintain personal connections: Building close relationships with decision-makers is essential, as decisions often rely on personal rapport. Formal reminders like emails may not be effective.
2. Gift-giving matters: Gifts symbolize friendship, not bribery. Simple tokens like whiskey or cigarettes are common, with reciprocal gifts (okaeshi) expected.
3. Respect cultural norms: Arrange seating and speaking order based on seniority, with juniors waiting for cues from seniors.
4. Avoid dominating discussions: Aggressiveness may offend; Japanese participants prefer a more reserved approach, needing time to process and translate thoughts.
5. Be patient, prioritize people over time: Japanese focus more on who is speaking than adhering to strict time limits.

Key Takeaways

In conclusion, the Ringisho process is a distinctive Japanese decision-making method rooted in values of consensus, transparency, and hierarchy. Effective Ringisho proposals are clear, respectful, and data-driven, often supported by practices like Nemawashi (informal pre-discussions) and Kessai (final authorization) to ease the process. For foreign businesses, understanding and respecting Ringisho helps in building strong Japanese partnerships. Emphasizing patience, cultural norms, and relationship-building is essential for success in the Japanese market, as these practices foster trust and collaboration.

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