Japan's 'omotenashi' culture can offer an edge in the AI age

Automation is coming for almost everything we do. By 2030, generative artificial intelligence will replace 2.4 million jobs in the U.S. alone, one forecast predicts. For those who remain employed, AI could impact 40% of their working hours.

Companies and their leaders will need to figure out what AI cannot replace -- and infuse it across their organizations. This urgent question brought to my mind the concept of omotenashi, a Japanese mindset focused on anticipating other people's needs and creating memorable experiences for them. It is not something AI could easily master.

I first experienced omotenashi on a trip to Tokyo in 2012, when a business partner handed me a courtesy umbrella in expectation of rain, and it has impressed me on a dozen subsequent visits to Japan for business and leisure. In a rapidly automating world in which organizations must seize every chance to make human connections, this considerate element of Japanese culture could be an important differentiator.

In a rapidly automating world in which organizations must seize every chance to make human connections.

Even though it is the polite form of?motenashi,?meaning "to entertain," some people say the concept can be explained as a combination of the words?omote?(public face) and?nashi?(nothing) -- a sincere and authentic form of service without thought of reward.

Omotenashi is anticipation. It is the chef at a four-seat sushi restaurant you have visited only once remembering your interest in ingredients and preparing a detailed English menu card just for you. It is attention to detail in the tiny stationery shops in the Tokyo subway, which turn simple purchases into works of art, eschewing plastic bags for delicately wrapped boxes with perfect edges.

It is also about privileging experience and exceeding expectations. Only recently, a hotel staff member who saw me preparing to leave the building in running shoes recommended a route, noted the best spot for taking photographs, and attended my return with a bottle of cold water and a towel.

And it is about reciprocity. Its roots lie in the Japanese tea ceremony, where the host's attention is matched by participants, who are expected to appreciate everything from the pottery they sip from to the smell of the roast.

As a corporate adviser and former entrepreneur and Pentagon official, I have been fortunate to work alongside leaders ranging from Fortune 500 CEOs to four-star generals and technology group founders. In omotenashi, I see a way forward for leaders wrestling with how to keep their organizations human. Now is the opportunity for organizations to stand out, especially as AI replaces traditionally human elements of work.

Leaders often win praise for showing selflessness. But the term "selfless" says nothing about the other people involved. Omotenashi, by contrast, emphasizes being "otherful," which focuses on what you are doing for someone else.

In business, this relates to "servant leadership," a business philosophy in which the goal of the leader is said to be to serve employees. This kind of "otherfulness" has been shown to increase employee trust and loyalty. Plus, setting an example as a servant leader enables your team to follow suit with customers.

In the West, hospitality tends to be transactional -- in stark contrast to Japan, where tipping is frowned upon. The same goes for Western corporations, which often miss the chance to build relationships. Whether they are customers or employees, people crave more than just an exchange of money for a product or their labor.

Businesses in Japan know the impact of honoring customers when it comes to retention and lifetime value. For leaders, those same benefits hold true in the context of team members and other stakeholders. By going the extra mile, a leader can create an experience that is more than just a paycheck.

The payoff? A worker engagement survey by Gallup, a U.S.-based business consultancy, assesses businesses on key management skills such as providing praise and encouraging professional development. Compared with their peers at the bottom, business units and teams scoring in the top quartile have 10% higher customer loyalty and engagement, 23% higher profitability and 66% higher employee well-being, plus better productivity.

For a business leader, embracing omotenashi can be as easy as choosing one client or customer interaction. Try treating the next person who walks in the door like an honored guest, delivering an exceptional and unforgettable experience.

That thoughtfulness touches on a Japanese concept related to omotenashi: ichi-go ichi-e, which can mean "once in a lifetime." Look at each encounter with a customer or client as your one chance to do right by them and create a lasting memory. With practice, showing such care could become automatic.

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This column was previously published by Nikkei Asia on December 27, 2023.