During Seiwajuku workshop in 2007, one family business leader, Joe, demonstrated his success story. With his older brother, Alex, Joe had run their construction company. Mr. Inamori *admired their achievement and made very positive comments. However, in 2009, Joe’s company asked the court its legal revitalization process and eventually went bankrupt in 2015. Joe’s company had been following Mr. Ianamori’s philosophy but how come Inamori’s disciple got unsuccessful in Joe’s business. This article spent time on the most important difference between Mr. Inamori’s Kyocera and Joe’s company.
Q: What is the most crucial difference between Mr. Inamori’s Kyocera and Joe’s company?
A: That’s corporate mission and its consistence. Mr. Inamori set out in the early stage of Kyocera that Kyocera exists to realize all the employee’s material, financial and mental fulfillment.
Q: Did Joe also set out such mission as he was learning the business management at Inamori’s workshop and Mr. Inamori did highly value that, didn’t he?
A: Yes, he did. Joe’s company set out the mission: to be the best company that employees feel proud of being a part of”. However, fundamental objective was different. Even though his brother Alex aimed to be a best company in the industry for their employees to be proud of being a part of it. As the company grows, Alex’s objective is simply chasing a fame and getting larger company. This looks like leader’s chasing power, merely egoism. That’s really pity, though.
Q: Did Mr. Inamori warn Joe and Alex, when they were attending the workshop?
A: Yes he did, he commented as follows: “You guys did very good job, you quitted bad habits in the industry, stopped unprofitable contracts for the public sectors and shared philosophy with your staffs. That’s why your company has grown now. However, only one concern that I have towards your company is that you guys are too optimistic. Be more cautious and careful. Alex hired many new undergraduate staffs, has done a lot of M&A deals, expanding your businesses in various regions, they look like accumulating your corporate debt, I assume. I would suggest actually taking more steady steps for you to grow. Kyocera has eventually come to where we are now however, I have always been very cautious on our growth. Standing on the solid ground has been one of my priorities in the busines management.
Q: What do you think about Mr. Inamori’s comments on Joe’s company?
A: It’s hard to say but Mr. Inamori is right. I know only a quite few leaders can do as did Mr. Inamori, but this is the fundamental part of business management. At the starting up of Kyocera, employees came to him and asked him to secure their lifetime employment and salary. Mr. Inamori had a very tough time in convincing them. He spent three days and nights and finally got the agreement: Inamori commits himself to the success and existence of Kyocera. At that time, Inamori realized that the reason to be for a company is only one: to fulfil employees in material, financial and mental. Otherwise, a company would never exist. Since that moment, he has set out that value as the company’s mission and lead that great success.
Q: What is the lesson learned from this episode?
A: The company which exists for its employees is the one which can be prosperous and grow eternally. I personally feel that if I had been able to join such a company, I would not have quitted that company. Most companies set out very supreme and respectful missions but at the end of the day they exist to fulfil financial desires of top management’s and major shareholders. As a business leader, I would like to develop businesses as did Mr. Inamori.
