Ringi

From CEOpedia | Management online

Ringi (also ringi seido, ringi system) is a decision making process in Japanese management systems. It is a bottom-up approach that overcomes traditional hierarchic process. It can be regard as an alternative or as valuable supplement to the methods prevalent in Western culture.

The difference in Japanese style of management comes from long years of country and economy closed to other cultures. This led to development of own approach to business based on Confucian philosophy, Buddhism and Bushido. In Western culture the importance of decisions to make is related to level in hierarchy. Top managers make the most important decisions. In Japanese culture managers are expected to reach consensus or even delegate decision making to subordinates. The final decision emerges as a balance of views of different employees. No one expects the managers to be infallible.

The Ringi means:

RIN - submitting a proposal to supervisor and receiving approval

GI - discussion and decision making

Example of Ringi

Let's use an example to illustrate how the Ringi system works. Say a company is deciding whether or not to implement a new customer service program. The senior manager would present the proposal to the team and explain the benefits and risks of the program. The team would then discuss and debate the proposal, and any objections or concerns would be addressed. Once the team has reached a consensus and all members approve the proposal, the decision is formally approved and implemented.

In summary, Ringi is a system of decision-making used in Japan, mainly in large companies. It is based on three main principles: consensus, delegation, and collective responsibility. It requires that all team members participate in the decision-making process and reach a consensus before a decision is made. The Ringi system is a time-tested method of decision-making in Japan and is still widely used in organizations today.

Ringi is best used in situations where it is important to ensure that all team members understand the issue and reach a consensus before a decision is made. It is also useful in situations where team members need to share responsibility for the outcome of the decision. Additionally, Ringi can be used when the decision-making process needs to be formalized and documented.

The ringi process

The communication in Japanese enterprise has many layers: formal and informal, top-down, bottom-up, horizontal and even diagonal. The decision making process is therefore difficult to describe, as almost any employee in the company can become the starting point or add value on some step of the process.

The proposal of decision (problem solutions) can be issued by any manager, and then it circulates across the enterprise through all workplaces that are affected by the decision. The general procedure is as follows:

  1. Proposal. Usually issued by middle manager, but sometimes also top executives. However, in most cases, top manager will let his subordinates to propose, because too much authority could limit discussion. Moreover, top managers can observe skills of subordinates.
  2. Circulation. All interested managers receive proposal and can add own comments. This includes meetings, discussions, Nemawashi. The propositions of lower managers are presented in document called ringi-sho, which contains their ideas. This document is circulated through various departments.
  3. Approval. Each department which receives ringi-sho can put own seal (hanko) to confirm agreement for the proposition. In some cases, the ringi-sho has to be withdrawn and new version with some changes is put into circulation. The final seal is put by the president of the company. The final seal is necessary, however is usually only confirms approvals of other managers.
  4. Record. The decision is written, published and executed.

The ringi process is a very democratic way of decision making. It allows all the managers to show respect for Japanese culture, especially: respect for elders, loyalty, harmony, working for collective good, obligation, duty and honour.

Ringi in lean

The Ringi can be a helpful tool, but it shouldn't be used as buzzword. In many implementations of lean managers treat lean tools as buzzwords, not real tools that can help create value. This approach doesn't motivate employees to use them. Also the analysis of needs should be done before implementing any such tool. It is possible, that some methods won't work in certain company. Is is also possible, that the company uses already better methods.

In Toyota Ringi was required for all projects that cost more than $5000, and level of approval depends on the overall cost. The more expensive the project, the more detailed ringi-sho should be. Ringi should be signed by people responsible for fields that are related to the project. Every company should create own procedures for ringi, depending on organizational structure, production type, etc [ArtofLean.org].

Example of ringi-sho

Ringi-sho
Date April 10th, 2016
Subject Proposal to start cooperation with new customer X
Objective To start cooperation with X and reach sales volume of 300 products per month
Background The meeting with representative of X happen during the international trade fairs in March 2016. The representative was interested in long-term cooperation.
Details The company is on the market since 1990. According to stock exchange data it has good financial status. It has high reputation on the market. The company extends its offer, which was the cause of discussion during thade fairs.
Request Please indicate your concurrence for starting cooperation with X

Advantages of Ringi

  • Promotes collective responsibility: As all team members are responsible for the decision, it encourages them to work together and come to a consensus.
  • Encourages debate and discussion: As the team members debate and discuss the proposal, they are able to come to a better understanding of the issue at hand and make a more informed decision.
  • Ensures shared accountability: As all team members are responsible for the outcome of the decision, it ensures that everyone is held accountable and takes ownership of the decision.

Limitations of Ringi

Despite its many benefits, the Ringi system does have some limitations.

  • The process can be slow and time consuming, as all team members must be consulted before a decision can be made.
  • The process can be susceptible to groupthink, as all team members must agree on the decision.
  • The process can be biased towards the senior members of the team, as they are typically the ones presenting the proposal.

Other approaches related to Ringi

  • The consensus-based decision-making process: This approach is similar to the Ringi system, but it allows for a more flexible decision-making process. This approach focuses on reaching a consensus among the team members, rather than having a single decision-maker.
  • The Delphi technique: This technique involves a series of structured discussions and questionnaires, where the participants are asked to provide their opinions on a particular issue. The responses are then used to reach a consensus.
  • The six-step decision-making process: This process involves six steps: (1) Defining the problem; (2) Generating possible solutions; (3) Analyzing the consequences of each solution; (4) Evaluating the options; (5) Selecting the best option; and (6) Implementing the solution.

The Ringi system is a well-established approach to decision-making in Japan, and it is based on the principles of consensus, delegation, and collective responsibility. Other related approaches include consensus-based decision-making, the Delphi technique, and the six-step decision-making process. Each of these approaches can be used to reach a consensus among a group and make better decisions.


Ringi — recommended articles
Brainstorming — Request For Information — Nemawashi — Quality circles — Stage-Gate process — Buying center — Design bid build — Feature-driven development — Communication with stakeholders

References

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