A Recession Is the Final Reckoning of One’s Way of Life — Management Reflects the Character of the Leader

This time, Inamori* spoke about the above motto in Kyocera philosophy.

What Inamori said is quoted with “”.

 

“What is management?

Management is nothing other than a projection of the person himself—his abilities, his character, his personality, everything he possesses.　Management must succeed under all conditions. Whether the economy is in recession or in boom times, the business must always perform well. That is what I call perfection.

To achieve such perfection, one must possess excellence in every aspect—ability, character, and personality. In other words, it requires a person without fundamental flaws. If a company can continue to perform well even during a recession, it means that the manager has long held a fundamentally different management mindset.

That is why, to be honest, I believe there is no medicine that can suddenly cure management during a recession”

(Quoted from the Inamori Digital Library)

Even in times of prosperity or recession, if a company is to continue generating profits, I believe the leader of the company must constantly hold the following mindset:

 

 

 

I will now explain each point in greater depth.

 

１ Whose profit is the company’s profit?

Inamori’s Words

“When the real estate bubble collapsed after the oil shock, many companies were struggling because they could not obtain financing. At that time, however, Kyocera—because we had never ventured into real estate—had ample cash and deposits and was able to act freely. The reason, I believe, was simply that I was more cautious than most people. In other words, I was somewhat timid.”

 

My Reflection

→ What Mr. Inamori is ultimately pointing out here, I believe, is a fundamental question: Whose money are a company’s profits?　

The greatest mistake I made in my own management was that I misunderstood this point. I believed that the profits earned by the company were something that secured the peace of mind of the top executive—that they somehow belonged to me.

Even if a company is not publicly listed, if I recognize that the profits of the company are not my own money, but funds entrusted to me by others, I would have acted very differently. Had I truly understood that principle earlier, I believe I could have avoided some serious mistakes.

I would like to take Mr. Inamori’s words deeply to heart.

 

２ Why do we work? (What is work?)

Inamori’s Words

“When I was young, my parents used to tell me that true profit is the money earned through the sweat on one’s forehead, in other words, the hard-working .

My mother especially told me never to borrow money.

Because of that, the idea of money earned without work has always frightened me, and I have never been able to pursue it.”

 

My Reflection

→ In Sanmeigaku, there are people for whom work itself becomes their guiding force or protective element in life. I believe that I am one of those people.

Many of the people whose charts I read also fall into this category. For such individuals, work is not merely a means of earning money. They must decide to work so that others may benefit and find ease, and through that effort they accumulate virtue.

However, I realized that my own awareness of what it means to work gradually became weaker. Instead, I began to focus on my own sense of security—wanting to move to a place where I felt safe and comfortable. In other words, I started acting with my own interests in mind. I now believe that this shift in mindset was the very cause of the major mistakes I made.

 

３ What are our convictions? — not being swayed by passing trends.

Inamori’s Words

“When times are good, the president of Kyocera—who refuses to engage in real estate speculation—may appear dull or even foolish. But when a recession comes, he suddenly appears exceptionally wise..”

 

My Reflection

→ I believe it is extremely important to read the turning tides of an era—to observe the movements of people, capital, and goods across the world, and to understand what lies behind them.　

In my view, the real estate bubble was a phenomenon that emerged from the postwar economic boom and the widespread adoption of Western-style values.

Even in such an environment, Mr. Inamori consistently upheld the belief that one must do what is right as a human being and that profits earned through the sweat of one’s brow are the only rightful profits. Because he remained faithful to that belief, I believe he was able to achieve what he called perfect management under any circumstances.

For our company, our convictions were not always firmly established.

However, going forward, we would like to act with the conviction that through real estate we can contribute to the realization of peace in the world.

 

 

 

 

** Sanmeigaku is a traditional Eastern system of thought based on the philosophy of Yin and Yang and the Five Elements, with a history of more than three thousand years.

It analyzes structural patterns derived from a person’s date of birth to understand human nature, life roles, and the cycles of life. Sanmeigaku is not fortune-telling.

Rather, it can be understood as a form of human science, combining philosophical insight with systematic observation of human patterns. Through this framework, people deepen their self-understanding and gain guidance for making decisions in life and business.

 

* Mr. Kazuo Inamori, the founder of Kyocera, KDDI (one of the top tele communication companies in Japan) and the top of revitalization project of JAL. As a well-known Japanese entrepreneur, he has been sharing his experiences and management know-how with managements of small to middle companies in Japan.

 

 

Further queries or doubts, please email to ytomizuka@abrilsjp.com

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