The Innovation Playground
Konosuke Matsushita: The Art and Wisdom of Management
Having read Konosuke Matsushita’s life and philosophy is like taking a journey back through time to the age in which people of my generation can hardly imagine. The book contains not only invaluable teaching we can learn from but the reflection to our own experiences on how we see things. The language uses is like a conversation between close friends, opened and frankly expressed. But perhaps, the most significant point that touched all readers may be the story of his integrity and the way of life which showed his true values, attitudes and believes.
Konosuke Matsushita His Life and Management Philosophy (the Art and Wisdom of Management, Volume 1)
It is now to me no wonder why Panasonic Corporation has become one of the most successful and yet the most admirable company in the world. Konosuke Matsushita has not only founded a solid ground for the company to grow but he has guided its future even after he has left through the ultimate truth in his management philosophy.
After reading the book, I have a strong feeling to share the wonderful lessons I learnt from it so I asked myself what is the best thing I can do to help spreading out the words. And here comes an idea. The paragraphs that followed are summary of the thoughts from one of the sharpest mind of 20th century.
• Awareness of social mission as manufacturers clarified my management philosophy has sustained Panasonic employee during the postwar years
• Company of all size, ranging from individual to government, need management philosophy
• Business management cannot be directed solely toward profit and expansion
• Philosophy must be rooted in a correct view of life, society and the world while reflecting different local needs
• The cycle of birth, growth, development and transformation is the laws of nature and society in which the management philosophy be founded on
• In contrast, the law of nature also imply deterioration, decay and disappearance and it is up to managers to account for the change with positive attitude
• Human beings pose the instinct to live better life in accordance with the laws and it is a mission of entrepreneur to satisfy those needs in steady, appropriate volume and reasonable prices
• Every managers should keep in mind the question “Why is this company necessary?” and its existence to benefit people and improve society must precede the business profit which is only a mean of achieving ultimate goal
• An enterprise is very much a part of social fabric. A purely personal, selfish motivation cannot be central even for a self-employ
• Social responsibility of an enterprise should lie at the core of all activities
• A manager needs to have a clear and correct understanding of the differences in the personalities and abilities of the people as well as their needs and desires
• Man stands above all living creatures because he is capable of understanding the laws of nature and using the wisdom to improve their lives
• Human is a master of all things and with this powerful role comes the responsibility to act with generosity and fairness
• By fulfilling our responsibilities and expanding our capacities, we can escape sorrow and suffering and realize our basic true goodness
• Just as the science requires a knowledge to best utilize the natural resources, a manager must know human nature to develop people to their fullest potential and expand the organization
• Management has a built-in mechanism geared toward success and it is a common sense based on the laws of nature
• Produce and sell quality merchandise, make a fair profit, and collect your payments while align with the laws of nature is much more essential than an intelligence and ability
• Making profit is not evil rather is a win-win relationship in which seller provides good or service which a buyer values over its price. The profit gained is a reward given by the society for its contribution
• Corporate profit and public welfare are co-prosperity through the mean of governmental tax
• A company that doesn’t make a profit is acting against the interests of society and it should be restructured or closed down
• A business has to keep up with society and its growing needs by continue investing in R&D, plant and equipment
• The wealth and profits earned must be shared with the society and all related parties, be it supplier, dealers including competitors
• The consideration of rivals profits and position will sustain the overall industry through reasonable competition and improvement of goods and services on their true values
• Monopoly games lead to less profit to all parties involved and must be especially avoided by major enterprises
• The larger the enterprise, the greater its responsibility to protect the business community from excessive competition
• Listen to the Public. Valuing needs and concerns of citizens as well as doing the right thing lead to approval and support from the public
• Public Relationship should never be used for false promotion and misleading advertising rather it should be used as a mean to build trust between public and the company
• Believe You Will Succeed. Regardless of the condition we are facing we must hold the confidence in it. Thanks Lady Luck for success and blame yourself for failure. Good times are good but bad times are better.
• Aim for Self-reliance. Company operation should be self-supporting and autonomous. Pay your debt ASAP to maintain low rate of capital per outside financial support.
• Self-sufficiency will generate secure and true cooperation when outside financial become necessary.
• Plan for Emergencies. Dam management; keep something in reserve in every sector and at every level of the business.
• “Stock dam” is never equal to over production which is the result of misjudgment.
• Know Your Limitations. Set realistic goal, aware of business capability and limitations. For diversified company restructuring into independent, autonomous division will create steady growth for both.
• To Diversify or to Specialize. Concentrated in a single area brings company best chance for success. If for a company that success in more than one business field, divide and make them separately managed.
• Developing Employee’s Potential. Management method is just only tools relied on the people using them.
• A company must first learn to manufacture good human beings before it can manufacture good product at reasonable prices.
• Use every opportunities to communicate the principle of management philosophy and lead by example. Give feedback. Delegate task and authority. All to become good human beings and responsible members of society.
• Consult Other People. Seeks the wisdom of others and never relies solely on personal experiences. Allow employees to develop and make full use of their talents in order for them to provide sound advice.
• Harmony in Opposition. Create good labor-management relations. Ideally, the stronger should pull the weaker one to the equal level.
• Be Politically Aware. Without supportive political infrastructure, the company would not propel. Rather it should help shaping a just and bounteous society.
• Keep Pace with Change. Adaptable to social change and anticipate for the future. Establish an on going process of innovation in every sectors.
• Be Constantly Creative. Management is a multidimensional work of art that integrates the various divisions harmoniously. Learn from true master.
• Management philosophy that integrating activities of various parts and inspiring employees with a vision will enable staff full potential thus resulting in a masterpiece of work.
• A bad manager can bring down an entire company.
• Look at Things As They Are. Practicing “Sunao” mind; a state of open-mindedness, an absence of mental rigidity and ability to see things exactly for what they are.
• Recognize differences’ values in people but never become a slave to our own desires, ideologies or mindset.
• Sunao minds brings genuine success in business and true happiness in life.
That’s all for the wrap up of the very essentials I found in the book. Indeed, every conclusion made are based on perspective of an individual who noted it and could hardly extract all of the gems out of the very thought of an original writer. There is no exception in my case as well. However, I have tried my best to summed it up without bias and prejudice in my humble opinion. All of false and misinformation regarding the teaching of Konosuke Matsushita here are all to my responsibility. I hope you find the article useful if not enlightened as I was after I flip the very last page of the book.
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