Unconventional thinking
Lessons from a billionaire CEO Buddhist monk
In 2010, Japan Airlines was on the brink of bankruptcy. Desperate to save their national carrier they reached out to Kazuo Inamori, an entrepreneur, management guru and Buddhist priest.
Inamori refused their advances on numerous occasions because he had no experience in the aviation sector. But Japan Airlines were convinced by his track record and his methodologies (based on having established the electronics giant Kyocera Corp. and KDDI Corp., a multi-billion dollar phone carrier).
That said, when he eventually agreed to come on board, they encountered his unorthodox thinking firsthand.
In response to questions around how he planned to increase shareholder value, he said he would do nothing.
In response to questions around how he planned to increase shareholder value, he said he would do nothing. Instead, he suggested it would be more beneficial to look after staff, because staff look after customers and customers look after shareholders. It’s a profoundly simple approach. In Inamori’s own words:
“‘Company leaders should seek to make all their employees happy, both materially and intellectually,’ Inamori said. ‘That’s their purpose. It shouldn’t be to work for shareholders...’ While that might not impress some investors, [Inamori] himself sees no conflict. ‘If staff are happy, they’ll work better and earnings will improve’, he said. ‘Companies shouldn’t be ashamed to make profits if they’re pursued in a way that benefits society.’”
Shigenobu Nagamori, another Japanese billionaire and CEO of Nidec Corp., has a similar view. According to Business Insider:
“‘When I’m asked by investors, I tell them they’re Number 1, but it’s not what I really think,’ he says. ‘I speak my mind if shareholders ask strange questions at the annual general meeting. I tell them it would be better if the likes of you didn’t own our shares. I say I can’t choose my shareholders, but you can choose the company you invest in.’ Nagamori says... he’s unwilling to fire employees if they’re putting in the hours, instead choosing to find them another position where they might perform better. He eats every meal with his staff.”
For any remaining cynics, consider the heading of the Business Insider article about Shigenobu Nagamori: This Japanese CEO cares about his employees more than investors, and his stock is still up 457%.
With Inamori, we also see reference to a greater Purpose—making profits that are pursued in a way that benefits society—which is central to business success, driven from the inside, and based on a culture that is clear, aligned, like-minded and appreciated.
Put simply, attracting the right staff protects the culture; a healthy culture helps staff to look after customers; and customers look after shareholder value. Combined, they all help build the brand.
